LOAN company Amigo has been given until September 2 to publish its delayed financial results after the hold-up breached one of its lending covenants.

The Bournemouth-based guarantor lender last week postponed the publication of its annual results after receiving a letter from the Financial Conduct Authority.

The letter concerned the company’s efforts to come up with a new scheme to cap compensation to customers complaining about mis-selling. A previous scheme was rejected by the High Court in May.

Amigo, which employs around 300 people, has previously warned that it could go into administration if a scheme is not approved. 

In an announcement this morning, Amigo Holdings PLC said it had now received a letter from a group representing more than the 25 per cent of the principal amount due to be repaid in 2024 under senior secured notes.

The letter constituted written notice of a breach of covenant which Amigo had referred to in its July 28 announcement.

The company said: “Accordingly, to avoid an Event of Default occurring, the financial results for the year ended March 31 2021 must be published within a 30-day period, on or before September 2 2021.

“The board is working with its auditors to enable it to complete the filing of these annual results within this period. The company will update the market with a new date for the publication of the results as soon as possible.

“Today, the first meeting of the Independent Customer Committee will take place, which was set up in response to the recommendations of the Judge at Amigo's High Court Scheme sanction hearing in May and will ensure the voice of creditors is heard.

“The committee is made up of eight customers, past and present borrowers and guarantors, and will be independently chaired. Customers will have the opportunity to consider the various options, including new Scheme of Arrangement proposals, to negotiate terms or put forward alternative options.

“The board is committed to finding a solution that addresses the complaints liability and provides an equitable resolution for all customers.”