Key points:
- Amigo Loans shares have been suspended from trading on the LSE.
- The lender will be in court for its scheme sanctioning hearing today.
- Hopefully, Amigo will be back to lending soon after the hearing.
The Amigo Holdings PLC (LON: AMGO) shares were suspended from trading on the London Stock Exchange (LSE) today ahead of the court sanction hearing scheduled for today and tomorrow.
While we do not have an exact date when the AMGO shares shall be available for trading again, we have to wait for further updates from the guarantor lender regarding how the court sanction hearing.
However, the hearing is expected to go without a hitch since most creditors voted in its favour. In addition, the UK’s Financial Conduct Authority (FCA) does not oppose the company’s new business scheme.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Investors are looking forward to the court approving the scheme, paving the way for the lender to resume lending activities, which many are waiting for and are excited about.
As mentioned in previous articles, demand for Amigo’s guarantor loans has risen due to the job losses triggered by the coronavirus pandemic, even though the UK labour market is showing recovery signs.
Amigo has a well-known national brand, although it has suffered reputational damage due to its past lending practices that resulted in some customers being charged extremely high interest rates.
Luckily for the firm, its customers do not have many other options since it is a lender of last resort for most people who have exhausted many other traditional lending avenues, such as bank loans, which tend to have much lower interest rates.
Therefore, I will be looking forward to any future updates from Amigo Loans, as I am sure many of you will. Hopefully, the company will return to lending activities sooner rather than later.
*This is not investment advice. Always do your due diligence before making investment decisions.
