Subprime lender Amigo given lifeline by UK court

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LONDON, May 23 (Reuters) – British subprime lender Amigo (AMGO.L) has won court clearance to compensate former clients for badly sold loans and a chance to stay in business and resume lending, a the company announced on Monday. .

Amigo has been fighting for its life in court for more than a year after a deluge of customer claims.

The company said it will now seek regulatory approval to resume lending and raise new capital.

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A previous bailout was thrown out by the courts after the Financial Conduct Authority raised objections, saying the plan spared claims.

The newly approved regime will result in claimants being paid a higher proportion of the value of their claims.

The FCA said on Monday it had taken note of the High Court’s approval and said the scheme was an improvement.

“We will continue to closely monitor Amigo as it launches the program and seeks to meet the conditions for it to resume lending. Our investigation into the company is ongoing,” FCA added.

Amigo’s shares were temporarily suspended on Monday pending the outcome of the court hearing.

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Reporting by Iain Withers Editing by David Goodman

Our standards: The Thomson Reuters Trust Principles.

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