R2OK!

mark occomore · Joined: 07 Dec 2006 Posts: 9955 Location: UK

Connaught on Tuesday said it was in the process of appointing administrators and requested trading in its shares be suspended after the stricken social housing group said its lenders would not provide the funding it needed to restructure.

In a statement, Connaught said that it was set to bring in partners from KPMG as administrators of the parent company and its troublesome social housing division.

However, Connaught’s environmental and compliance division avoided being put into administration. A person familiar with the matter said it was being touted for a possible sale.

A person close to the company said the move to bring in the administrators was a “shock”, but the banks hadn’t given the support needed for the group to refinance.

The development comes at the end of two months in which Connaught’s shares have crashed from 320p at the end of June to just 16½p at the close of trading on Monday.

This will put contracts on hold and putting 10,000 people out of work. It could also put repairs to properties on hold which may effect where people are living.

ColinB · Guest

My friend was, until recently, an interim director with one of the Connaught companies. His contract ended just in the nick of time. The dire state of the group's finances has been known for a long time so it can't really be described as a "shock". The company was appallingly run.

However, I'm not really sure why this warrants a thread in these forums, Mark. Are to we have a thread on every major news story and - if so - wouldn't it be best left to the mainstream news portals?

BTW - why have you gone to the effort of highlighting the company name in red???

mark occomore · Joined: 07 Dec 2006 Posts: 9955 Location: UK

ColinB · Guest

mark occomore · Joined: 07 Dec 2006 Posts: 9955 Location: UK

ColinB · Guest