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Amigo creditors vote in favour of redress scheme

Some 95% of creditors, representing over £230m, voted in favour of the redress scheme, Amigo has announced.

The scheme, which was first announced in January, required more than 50% of all creditors who vote, to vote in favour.

 

In total, the company has received 74,877 votes in favour of the scheme and 3,863 votes against the scheme, with values of £230,744,046 in favour and £10,319,764 against.

 

The lender has previously warned that if the redress scheme fails, Amigo will likely enter insolvency.

 

The next stage takes place on the 19th May, whereby the scheme will require sanction by the court.

 

Earlier this month, Amigo received a letter from the Financial Conduct Authority (FCA) stating that it intends to appear at the court sanction hearing through counsel to oppose sanction of the scheme, even if approved by the requisite majority of the scheme creditors. This is on the basis that the court cannot be satisfied that the scheme in its current form is fair.

According to the guarantor lender, the letter stated that the FCA’s concerns are in relation to scheme creditors’ claims being significantly reduced whilst other stakeholders, such as shareholders, are not being asked to contribute.

 

Gary Jennison, chief executive of Amigo, commented: "Our customers have voted overwhelmingly in support of the scheme, showing that customers due redress believe that the scheme is the fairest and best option for them. We are naturally disappointed by the FCA’s stated intentions to oppose the scheme.

 

“If the scheme is not approved by the court, then Amigo is highly likely to enter into administration. This will deny mis-sold customers access to a share of the compensation to which they are entitled and will also have a significant impact on the many millions of UK adults who cannot access mainstream credit.

 

"The new board and management hopes that the voting and views of Amigo’s past and present customers are listened to and they are not denied the compensation they are entitled to. We strongly believe that the scheme is the best for all our customers - past, present and future - and the only way for Amigo to continue to be part of the solution for providing financial inclusion in the UK."

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