Amigo share price crashes as high court rejects scheme of arrangement

The Amigo share price (LSE: AMGO) crashed this morning after the guarantor loan provider revealed that the High Court rejected its proposed scheme of arrangement; siding with the FCAs stance.

Investors who had followed the progress noted that the judge was seemingly siding with the FCAs perspective and were hopeful that an alternative scheme would be drawn up ( Investors hope for a revamped scheme as Amigo shares suspending during court hearing ).

Following a temporary suspension in shares, investors ploughed back into Amigo recently in the hope that a suitable scheme or outcome will be agreed.

And this could still be a possibility.

In an update today, Amigo confirmed that it is reviewing all of its options including an appeal.

Adding that a further update will be provided in due course, Chief Executive Officer Garry Jennison expressed disappointment the current scheme was rejected and will provide an update as soon as possible:

“Amigo is incredibly disappointed that the Scheme has not been approved despite the 74,877 customers who voted in support of the Scheme, representing over 95% of those who voted. We are currently reviewing all our options and will provide an update at the earliest opportunity.”

The Amigo share price is currently down by over 50 percent and trading at a price of 9p.

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