By Sabela Ojea


Amigo Holdings PLC said Monday that if its new business program doesn't receive court approval Amigo Loans Ltd. will enter a wind-down program or insolvency.

The U.K. provider of guarantor loans said that if the program isn't approved redress creditors would receive less than under the new business program, and the company's shareholders would receive nothing in respect of Amigo Loans.

The company said early in December that its new business program proposes an initial contribution to its creditors of 97 million pounds ($131.5 million), to be generated from internal resources.

"Should creditors vote for the new business scheme and the court subsequently approve it, these provisions provide additional protection for creditors and address certain of the concerns raised by the court above the previous scheme. They are necessary for Amigo to survive and avoid insolvency," Chief Executive Gary Jennison said.


Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix


(END) Dow Jones Newswires

01-24-22 0317ET