Before submitting your vote, it is essential you understand the outcome of your vote.
Voting 'for' the Scheme means you would like the Scheme to go ahead, meaning customers with a valid claim have the opportunity to receive cash compensation.
Voting 'against' the Scheme means you do not want it to go ahead. If the Scheme does not go ahead, Amigo will enter insolvency (meaning we no longer exist). In an insolvency, based on our estimates, customers with a valid redress claim will not receive any money back for their complaint.
To put it simply, if you would like to receive money back on your claim, it is vital you support the Scheme by voting FOR.
If you're a current Amigo customer, you will still need to continue to make your repayments in line with your agreement, regardless of the Scheme outcome and if Amigo were to go insolvent.
Why should you vote FOR the Scheme?
The main reasons for you to vote in favour of the Scheme of Arrangement are:
- 1 The Scheme will allow customers with valid claims to receive some cash compensation. If the Scheme is not approved, Amigo will likely enter into insolvency, which based on our estimates, would result in customers with valid claims receiving no cash compensation.
- 2 The Scheme will allow for fair and equitable treatment of customers.
Vote FOR your money: Support the Scheme
Understanding Common Misconceptions
In light of the media attention that has been gained during the proposition of the Scheme, it is important to be correctly informed around the following common misconceptions.
"Amigo group is proposing the Scheme to avoid paying customers complaints redress/Amigo wants to prolong having to pay redress"
- This is incorrect. The Scheme has been proposed in light of the number of customer complaints. Due to the sheer number of claims looking for redress payments, there is not enough money to honour all valid claims. Therefore, in order for an equal chance of receiving some redress, the Scheme is the best option to honour this. If we do not enter into the Scheme, unfortunately it is likely that customers will not receive any redress on their complaint.
"If Amigo goes insolvent, then customers who have a claim in progress will still be able to get a full redress"
- Customers who have a complaint in process will not receive full redress if Amigo goes insolvent. This is because under insolvency law there are other creditors in the insolvency that will have priority over the customers, due to being 'secured creditors'. Customers of Amigo (borrowers and guarantors), are considered 'unsecured creditors'.
"If Amigo goes insolvent, then customers who have an existing Amigo loan will not have to continue making their repayments"
- Regardless of the outcome of the Scheme, if you have an existing Amigo loan, you will still need to continue making the repayments, in line with your agreement. If the Scheme is not approved, and Amigo faced insolvency, your repayments will still be collected. The only difference for customers in an insolvency is that you would not receive any money back on a valid redress claim, if you made one.