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

By Reuters

<p><body> <p>(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.</p> <p>The Financial Conduct Authority (<span class="caps">FCA</span>) 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.</p> <p>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.</p> <p>Amigo’s rescue plan has drawn criticism from politicians and consumer groups for potentially short-changing customers.</p> <p/> <p> (Reporting by Muvija M in Bengaluru, Editing by Iain Withers)</p> </body></p>