Lender Extends Lifeline to Struggling Amigo Loans

The company behind Amigo Loans has been given an extra three-month lifeline from its lender as the business tries to stave off collapse, Yahoo.com reported. The guarantor lender said that its bank had extended the grace period it had given Amigo to September 24. The waiver was set to run out on Friday. During this period the bank will not take action if Amigo breaks the conditions attached to the so-called securitisation facility. The amount available to Amigo through the facility was also slashed to £100 million from £250 million. Weighed down under a slew of customer complaints, Amigo has been fighting for months to stay above water. The lender warned that it still faces insolvency after a High Court decision to reject its plan to get out of the crisis. Amigo’s rescue scheme would have handed smaller-than-expected compensation packages to customers with historical complaints. Read more.