Shares of Amigo Holdings PLC (LON: AMGO) edged slightly higher after revealing that the Independent Customer Committee formed at the High Court’s request was meeting for the first time today.
The guarantor loans company also revealed that a section of bondholders had written to it regarding the notice of breach issued on July 28, giving the company 30 days up to 2 September 2021 to publish its annual results.
Amigo had issued a public notice on July 28 saying that the UK’s Financial Conduct Authority (FCA) had said that it would not sanction the firm’s return to lending until the High Court approves a new compensation scheme.
The company has not unveiled a new compensation scheme after the High Court’s decision. Still, it has made progress in other areas, such as the appointment of Mike Corcoran as its Chief Financial Officer (CFO).
Amigo’s moves have received a lukewarm response from investors, given that its shares have been trading sideways since June.
However, the September deadline for publishing its annual results and the official start of the independent committee’s meetings may bring some much-needed traction to the company’s efforts to resume lending activities.
At the moment, it seems like investors are waiting for the guarantor lender to get on a clear track to its lending activities before buyers can jump in and push prices higher.
Aggressive traders may choose to buy Amigo shares at current levels since they seem to have bottomed, but they should be aware that there could be further declines if the company has some negative announcements in the future.
*This is not investment advice.
Amigo share price.
Amigo shares have been trading sideways since June and barely moved following today’s announcement.
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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading