The plan consists of three elements; the injection of £3.7m in funds, lump sum payments to Amicus’ expense creditors as well as payments to secured and unsecured creditors from legacy loans.
Creditors will be split in to five classes of senior secured creditors, junior secured creditor, preferential creditor, expense creditor and unsecured creditor.
The plan will use a cross-class cram-down, which means all creditors of any class will be bound by the court sanction.
Amicus Finance entered into administration in 2019 as the property lending arm closed down due to the separation of Amicus Asset Finance from the group.
It was forced to cease property lending as a deal for further investment could not be secured by shareholders, and all staff were put on consultation for redundancy and administrators formally called in December.
A restructuring plan was proposed to prevent the firm entering liquidation and aims to return to the company to solvency and rescue it as a going concern. The administrators argued that it would put creditors in a better position than if the company was liquidated.
Initially Crowdstacker, one of the creditors, voted against the plan, but due to new legislation introduced last year the High Court was able to approve the plan despite the opposition as the majority of other creditors agreed.
It is thought to be the first time a restructuring plan has been proposed to exit a company from administration.