Amigo Scheme of Arrangement – Register now!

On 15th March 2022, the High Court allowed Amigo to invite creditors to vote on their Scheme of Arrangement proposals. Creditors include past and present customers of Amigo and the Financial Ombudsman Service.

If you’ve had or guaranteed a loan with Amigo, then you could be owed compensation.

Belmond & Co have a significant amount of experience assisting thousands of clients with their potential compensation claims through Schemes of Arrangement.

If you would like Belmond & Co to assist you with your claim for compensation complete the form below.

Amigo SOA Registration

  • This field is for validation purposes and should be left unchanged.
  • What is the current status of the Amigo Scheme of Arrangement?

    Creditors are being asked to have their say and vote ‘for’ or ‘against’ each of the new Schemes proposed by Amigo.

    The Scheme vote ends 5pm on 10 May 2022.

    Voting ‘for’ means you understand the outcomes of the proposals and you want that Scheme to go ahead.

    Voting ‘against’ means you understand the outcomes of the proposals and you do not want that Scheme to go ahead.

  • What is a Scheme of Arrangement and why is Amigo proposing a Scheme?

    Over the last two years Amigo has received lots of complaints from customers, mostly those who’ve had loans they might not have been able to afford because Amigo didn’t carry out the right checks when the loan was given to them.

    Because Amigo cannot afford to pay all the compensation or ‘redress’ due, they are using a legal process called a Scheme of Arrangement, or Scheme for short. A Scheme is a compromise or an ‘arrangement’ between a company and its creditors. In this case, the creditors involved are Amigo customers that are owed redress and the Financial Ombudsman Service.

    A Scheme will allow these creditors to receive a fair and proportionate share of the total compensation available.

  • What is Amigo proposing?

    Amigo is proposing two Schemes of Arrangement:

    The New Business Scheme; and The Wind-Down Scheme

  • What is the New Business Scheme?

    The New Business Scheme includes both a ‘Preferred Solution’ and a ‘Fallback Solution’. The reason is that there are two specific events that must happen in the Preferred Solution for business (i.e. future lending) to continue.
    These specific events are called the Conditions (set out below).

    The success of the ‘Preferred Solution’ under the New Business Scheme depends on Amigo returning to lending under an improved business model with new products for customers offering increased flexibility and affordability.

    It has been named the ‘Preferred Solution’ as it was the preferred route forward negotiated by the Independent Customers’ Committee. Amigo believes this will provide the most cash compensation for customers with valid claims and the FOS. However, for the Preferred Solution to go ahead, the Conditions that Amigo must meet are:

    1. Amigo must start lending within 9 months of the date the New Business Scheme is approved. (This requires the Financial Conduct Authority to be satisfied that Amigo can recommence lending); and

    2. Within 12 months of the date the New Business Scheme is approved, Amigo must issue at least 19 ordinary shares for every 1 ordinary share in issue immediately beforehand. (A successful share issue will be used to fund a payment of at least £15m to creditors under the Preferred Solution).

    If the Conditions are met and the New Business Scheme goes ahead, Amigo estimates that under the Preferred Solution it will have approximately £116 million in cash to pay creditors with a valid claim. If Amigo collects more money from its existing loan book than is estimated, or if it can contribute more than £15 million from issuing shares, Amigo will pay more than £116 million. However, under the Preferred Solution, Amigo will not pay less than £112 million in compensation. Amigo believes this will provide the most cash compensation for creditors with valid claims and the FOS.

    If Amigo doesn’t achieve both Conditions, we will follow a plan to wind-down the business. This plan is called the ‘Fallback Solution’. Under the Fallback Solution, Amigo’s business will be wound down, meaning outstanding loans will be collected over time. We will pay off our bonds and operating costs, and then the money that is left over will be used to pay creditors with valid claims and the FOS. Once we have done these things, Amigo will go into liquidation (i.e. cease to exist). There is no set cash amount for redress creditors in the Fallback Solution.

  • What is the Wind-down Scheme?

    The Wind-Down Scheme is based around Amigo winding down the business and not returning to lending. If this Scheme goes ahead, Amigo will gradually close down the business, collecting remaining loans, and then pay off all our necessary costs, such as our bonds and operating costs. The remaining money will be paid to their creditors who have a valid claim in the Scheme. Once Amigo have done these things, Amigo will go into liquidation (i.e. cease to exist). Based on estimates, the amount of available money available to pay cash compensation in the Wind-Down Scheme will be less than is estimated to be available in the New Business Scheme, but would be more than in administration.

  • What is the difference between the Wind-Down Scheme and administration?

    The Wind-Down Scheme is based around Amigo winding down the business and not returning to lending. If this Scheme goes ahead, Amigo will gradually close down the business, collecting remaining loans, and then pay off all our necessary costs, such as our bonds and operating costs. The remaining money will be paid to their creditors who have a valid claim in the Scheme. Once Amigo have done these things, Amigo will go into liquidation (i.e. cease to exist). Based on estimates, the amount of available money available to pay cash compensation in the Wind-Down Scheme will be less than is estimated to be available in the New Business Scheme, but would be more than in administration.

  • How do I know if I have a claim?

    You may have a valid claim if you believe you were given an Amigo loan or stood as a guarantor for an Amigo loan when you couldn’t afford to make the repayments, at the time it was given. This applies to borrowers and guarantors. You may also have a valid claim if you are or were a borrower or guarantor on an Amigo loan and you have any other claim arising out of or in relation to an Amigo loan.

  • When will I find out if I am owed any compensation?

    We will register your claim if the Creditors vote to approve the Scheme. We will inform you when we have registered your claim. Amigo will notify us that they have received your claim within 8 weeks of the claim being submitted.

  • When will I get any compensation paid to me?

    It is estimated that for the New Business Scheme and Wind-down scheme it may be possible for initial payments to be made in September 2023 with final payments being made at a later point. In an administration it is estimated that initial payments might be made early 2024.

  • How much do Belmond & Co charge

    Belmond & Co only charge their fee if you receive a successful offer of redress. Our fee is charged based on the value of the redress offer made. You can view our fee table via our terms and conditions.