Amigo Holdings PLC (LON:AMGO), the controversial lender, has been given extra breathing space by its lenders.
The suspension of certain conditions relating to its loan facility was due to run out today but has been extended to 24 September.
All new lending activity at Amigo has been frozen and this has prompted the reduction in the size of the facility to £100mln from £250mln.
All cash generation arising from customer loans held within the facility is restricted and will continue to be used during the extended waiver period extension to further reduce the outstanding balance of the facility. As of the date of this extension, Amigo had drawn down £27mln.
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Amigo is currently considering its options after the High Court recently rejected the company’s planned scheme of arrangement, which was supposed to pave the way for the survival of the company.
The board of Amigo has reviewed options with the Financial Conduct Authority and discussions are ongoing. This could result in a revised scheme of arrangement or insolvency, Amigo said.
Shares in Amigo were up 4.9% at 9.17p in mid-morning trading.
The company possibly has enough or close to enough money to repay bondholders in case of insolvency. For a company it is great to see bonds trading closer to face value as will be easier for them to renegotiate new funding.
— inves2day (@inves2day) June 24, 2021