Amigo Holdings PLC shares tumble as judge delays scheme of arrangement ruling

Shares in guaranteed loan group  () dropped by 35% as trading resumed following a court case yesterday to ratify its controversial creditors’ scheme of arrangement.

The judge did not make a ruling but said he would do so in due course.

Amigo had asked for its shares to be suspended ahead of the judgment but said that after the decision yesterday it is appropriate for the trading suspension to be lifted.

“Furthermore, the company is not able to confirm when the decision on the Scheme of Arrangement will be delivered by the Court or when and how it will be announced” it said.

The scheme caps awards for the misselling of guaranteed loans by Amigo, with a pot of between £15-35mln to be shared out by all the claimants plus a share of profits made by the company over the next four years.

Amigo has said the company might go bust if the scheme is not approved following a surge in complaints.

Amigo shares fell 8.36p to 15.22p.