Amigo Shares Plunge 12% As It Decides to File for Insolvency Summary The London High Court refused to approve Amigo Holdings customer compensation scheme last week. The companys chief executive said that in the absence of a scheme, Amigo would face insolvency because it would not be able to settle its customer compensation claims. On 11 May, the FCA had sent a letter to Amigo which said that the terms of its rescue scheme were unfair to the creditors. The share price of Amigo Holdings Plc ( LON: AMGO ) once again suffered a sharp drop on Tuesday after the loan providing company said that it would be filing for insolvency as the court had rejected its rescue plan last week. The company shares (market capitalisation: £39.45 million) were down 12.05 per cent to GBX 7.30 in the early trading hours on 1 June. Justice Miles, the London High Courts judge, had rejected the companys plan that could have slashed the compensation payouts to customers for mis-selling loans . Amigos company statement released on 1 June said that it would not appeal the ruling.