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British lender Amigo puts potential rescue plans to creditors

By Reuters

LONDON – British subprime lender Amigo said on Monday it had finalised two potential rescue schemes for the ailing company, which will be voted on by creditors.

Amigo said its first plan would mean the company would restart lending, after this was paused to deal with a deluge of past mis-selling complaints. The second plan would necessitate the winding down of the company, it said.

Amigo estimates compensation claimants – which make up the company’s creditors – would get 42 pence in the pound from the value of their claims in the first scenario, and 29 pence in the second.

A court hearing will be held in February to decide whether to sanction either of the two schemes, if they are approved by creditors.