Dec 6 (Reuters) - British sub-prime lender Amigo
said on Monday it plans to contribute 97 million pounds ($128.32
million) under a new business rescue proposal, revised up from
35 million pounds that it had previously estimated.
The lender laid out two different options one dependent on
the restart of lending operations as well as securing money
through an equity raise, and the second being through a managed
wind-down of its guarantor loans business.
Amigo, which used to lend to people who fail to secure a
loan from a mainstream banks before it halted new loans, said it
will put both the schemes to a vote to its creditors.
Shares of the company dropped 13% in early trading.
The new proposals come after London's High Court in May
rejected Amigo's previous plan that would have cut compensation
payouts to customers who had complained about the company
mis-selling loans to them.
The company expects to fund the new business rescue proposal
from the equity raise and new capital commitments.
Amigo also said that the country's financial regulator had
informed the lender that it might impose a requirement on its
regulatory permissions, which could restrict the company from
continuing its business.
The Financial Conduct Authority's investigation into Amigo
is still ongoing.
($1 = 0.7559 pounds)
(Reporting by Sinchita Mitra in Bengaluru; editing by