Shares of Amigo Holdings tanked on Friday after a temporary suspension of share trading was lifted, with the guarantor lender’s fate hanging in the balance as it awaits a court decision on its rescue plan.
Earlier this month, Amigo said that most of its creditors had voted in favour of a rescue scheme that will see them get less compensation for misselling than they are owed, but the Financial Conduct Authority said it was set to oppose it on the basis that it isn’t fair.
The subprime lender had already said it would go bust due to misselling compensation if the plan does not go through, leaving claimants with nothing at all.
The scheme also needs to be sanctioned by the Court and a hearing was held on Wednesday.
Amigo applied for the trading suspension pending an announcement of the court’s hearing outcome. However, late on Thursday the company said it had applied for the suspension to be lifted given that no decision had yet been made.
“The company is not able to confirm when the decision on the Scheme of Arrangement will be delivered by the court or when and how it will be announced,” it said.
At 0910 BST, the shares were down 29.4% at 16.65p, having fallen to as low as 11.41p earlier.
