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Commercial Property News
Connaught to seek administration
Property services group Connaught is nearing administration, having this morning asked the Stock Exchange to suspend trading in it's shares.
Connaught, which employs 10,000 people and has £220 million of debt, is expected to make an announcement today.
The FTSE 250-listed group has run into trouble over the past two months after it revealed that a series of contracts would be loss-making. In June it identified 31 contracts that had been deferred after spending cuts were announced in the Budget.
It has borrowed money from six banks and four other creditors. Royal Bank of Scotland provided Connaught with £15 million in a bid to help the company.
Despite a rescue plan put together by new chairman Sir Roy Gardner, creditors have decided to put the business into administration, the BBC said today. In announcing the suspension of it's shares the company said that no further funds will be forthcoming from it's lenders.
Connaught shares have lost around 90% of their value since June.
Connaught, which employs 10,000 people and has £220 million of debt, is expected to make an announcement today.
The FTSE 250-listed group has run into trouble over the past two months after it revealed that a series of contracts would be loss-making. In June it identified 31 contracts that had been deferred after spending cuts were announced in the Budget.
It has borrowed money from six banks and four other creditors. Royal Bank of Scotland provided Connaught with £15 million in a bid to help the company.
Despite a rescue plan put together by new chairman Sir Roy Gardner, creditors have decided to put the business into administration, the BBC said today. In announcing the suspension of it's shares the company said that no further funds will be forthcoming from it's lenders.
Connaught shares have lost around 90% of their value since June.
Tue, 7th Sep 2010