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Britain's ailing Amigo secures funding line waiver extension

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By Reuters
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– Amigo said it has secured three months breathing space on a funding line as it scrambles for its survival, but it has been cut to 100 million pounds ($139 million) from 250 million.

A court rejected a rescue plan last month for British subprime lender Amigo, whose shares were up 12% on Friday after it said had agreed a waiver on the performance triggers on a securitisation facility be extended to Sept 24 from June 25.

Amigo has been under pressure after a deluge of customer mis-selling complaints threatened its collapse.

London’s High Court rejected its proposed rescue plan in May that would have cut payouts to customers, after it was opposed by the Financial Conduct Authority.

Amigo said the securitisation facility was cut because of an ongoing suspension on new lending. At the date of extension, the facility was drawn at 27 million pounds, it added.

The company also repeated that it was reviewing its options, including a new rescue plan or insolvency.

($1 = 0.7190 pounds)

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