7 July 2022
R&I Update - July 2022 – 2 of 6 Insights
The court sanctioned one of two potential schemes of arrangement for Amigo Loans Ltd (Amigo) and approved a plan that provided for two possible outcomes.
Amigo provided guarantor loans to customers with poor credit scores. Amigo owed customers and the Financial Ombudsman Service £375 million for customer complaints and was insolvent.
Following a court order to convene creditor meetings and the two schemes being approved, the court considered whether to sanction the first scheme of arrangement. It was only to consider the second scheme in the event it did not sanction the first. The first scheme provided for two possible results:
The court sanctioned the first scheme of arrangement and so did not need to consider the second.
The judge held that:
The case demonstrates how flexible schemes of arrangements are. Creditors can be presented with two schemes which can themselves be versatile.
To discuss the issues raised in this article in more detail, please contact a member of our Restructuring & Insolvency team.