ao link
0 £0.00
This item was added to your basket
Credit Strategy homepage
LinkedIn
Twitter
Intelligence, Insight and community for responsible professionals in credit

High Court rejects Amigo’s redress scheme

The High Court has rejected Amigo’s proposal for a redress scheme, as the judge urges the directors to restructure the group.

Mr Justice Miles has issued a ruling stating that he was “not satisfied that the court should sanction the scheme”.

 

He explained that some form of restructuring of the group is “clearly desirable and indeed needed."

 

He said: “I have accepted the submissions of the Financial Conduct Authority (FCA) that the redress creditors lacked the necessary information or experience to enable them properly to appreciate the alternative options reasonably available to them.”

 

The FCA opposed the scheme, as it believed the scheme was “inherently unfair”. The watchdog said the scheme “placed a disproportionate burden on customers, as opposed to shareholders and bondholders, to keep the company afloat.”

 

Amigo had previously warned that should the scheme fail, Amigo would likely enter insolvency.

 

However, the judge said that he accepted the FCA’s submission showing the court’s refusal to sanction the scheme would probably not lead to the imminent insolvency of the group.

 

Amigo’s board is now reviewing all options including an appeal.

 

Gary Jennison, chief executive of Amigo, said: "Amigo is incredibly disappointed that the scheme has not been approved despite the 74,877 customers who voted in support of the Scheme, representing over 95% of those who voted. We are currently reviewing all our options and will provide an update at the earliest opportunity."

Please login to continue reading this article.

Not a member?

Become a member

FREE registration. No credit card required

Register now
  • Stay up-to-date with industry news and appointments
  • Hear about events first
  • Read 1 free Premium article per month

Become a premium member

From as little as £3.48 per week

Become Premium
  • All the perks of a standard member plus:
  • Access to the entire Credit Strategy website
  • 12 months subscription to Credit Strategy Magazine
  • 25% discount to all conferences
  • Exclusive access to Premium Member only roundtables
  • 50% off award entry fees

GET THE LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

CMA investigating Pennon’s acquisition of Bristol Water

CMA investigating Pennon’s acquisition of Bristol Water

Government to extend eviction protections

Government to extend eviction protections

Government urged to boost post-Brexit SME funding

Government urged to boost post-Brexit SME funding

Upcoming events

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group