Amigo Loans thrown new lifeline amid virus turmoil

Lenders to Amigo Loans have thrown the embattled firm another lifeline by extending a deadline by four more months.

The guarantor lender said it now has until 18 December to ensure that it is within the terms of a multi-million-pound financing facility.

The lifeline extends the deadline, which was meant to run out last Friday after originally being extended for a few weeks.

The facility will give Amigo enough time to understand the impact of the coronavirus pandemic, it said. The new deal will also reduce the facility’s size from £300 million to £250m.

The waiver on the terms was announced in May, and was due to expire at the end of July, but lenders then gave Amigo another few weeks.

Amigo needed the waiver after the Financial Conduct Authority stepped in to ask it, and other lenders, to support customers through the pandemic. The firm said: “Amigo has adequate liquidity to continue to fund operations and support its customers .”