Evil Knievil: Justice in action

I had lunch on Monday with Tom Hayes who is reconstructing his life having been released from jail a few weeks ago. I cannot go into the many outstanding matters that will form the basis of his appeal but since he is clearly not a liar, I reckon he has a tremendous chance of being acquitted. It continues to shock me that the judicial system has treated him the way it has.

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Yesterday Amigo (LON:AMGO) announced that, so far, creditors of AMGO have voted massively for the Scheme of Arrangement. However, AMGO also announced that the FCA, its regulator, thinks that creditors are not getting enough and, consequently, are putting up counsel to ask the judge on 18th May to set aside the Scheme. The consequence of such a decision would probably mean that AMGO goes bust and the creditors get nothing at all. I cannot see the wisdom of this.

On the announcement I bought 200,000 AMGO at 26p and was a bit surprised to see the shares close at 23p. On the other hand, markets were generally weak, and punters tend to take recent good profits in such a market. Further, creditors have had months to put up an alternative Scheme. The fact that they have not supports my view that the judge next week would have to be potty to support the FCA’s application. Mind you, I have come across quite a lot of potty judges in recent years. So I had best be cautious.