Creditors at payday lender Amigo secure their survival

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Amigo, the troubled subprime lender, said its creditors supported a court case and a new share offering that would allow it to continue.

Amigo bailed out after complaints about its lending practices skyrocketed. It has now requested a suspension of its shares while the court case concludes.

The company said its creditors had voted in favor of a scheme it hopes can give them 42p for every £1 owed.

The proposal was backed by nearly 89 percent of customers who voted, beating out a second proposal that would have ended the deal with a lower payment to customers.

“Our customers have voted in favor of the new business model, which Amigo’s Board of Directors believes will provide the greatest possible redress to creditors,” said Chairman of the Board Gary Jennison.

“This is an important step in addressing the liabilities arising from historical lending practices under the previous administration.

“However, the new business model still has to be approved by the court.”

The case comes before the court on May 23-24.

The company’s future was in limbo for two years after receiving so many claims for damages that it just couldn’t pay them all.

A year ago, unfairly treated customers voted in favor of another deal that would have netted them just 10p for every £1 owed. However, this was thrown out by the High Court, who said it was not fair.

Amigo also has an office in Ireland and began lending here in February 2019, targeting people with “poor credit” who had been turned down by traditional lenders. It offered loans of up to €5,000 at an annual rate of 49.9 percent.

However, until the restructuring, all new loans were discontinued. – PA

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