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UK watchdog to challenge lender Amigo's rescue plan at court

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(Reuters) – Guarantor lender Amigo said Britain’s financial regulator has told the company it intends to oppose a rescue plan at a court hearing on the basis that the court cannot be satisfied that the current proposal was fair.

The Financial Conduct Authority (FCA) said in a letter to Amigo that it was concerned customers’ compensation claims would be significantly reduced while shareholders were not being asked to contribute, the company said.

Amigo said over 95% of votes cast by current and former customers to date were in favour of the scheme, ahead of a creditors’ meeting on Wednesday. The scheme requires 50% creditor support and at least 75% of the value of claims.

Amigo’s rescue plan has drawn criticism from politicians and consumer groups for potentially short-changing customers.

(Reporting by Muvija M in Bengaluru, Editing by Iain Withers)

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