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| Social housing group Connaught 'nears administration' | Social housing group Connaught 'nears administration' |
| (about 3 hours later) | |
| Connaught, the property services group that specialises in social housing, is on the brink of going into administration, the BBC has learned. | Connaught, the property services group that specialises in social housing, is on the brink of going into administration, the BBC has learned. |
| The company, which employs 10,000 people, has suspended trading of its shares, and said a further announcement would be made "in due course". | The company, which employs 10,000 people, has suspended trading of its shares, and said a further announcement would be made "in due course". |
| Connaught has £220m of debt, provided by six banks and a quartet of other creditors. | Connaught has £220m of debt, provided by six banks and a quartet of other creditors. |
| But it said discussions to secure further funding had been unsuccessful. | But it said discussions to secure further funding had been unsuccessful. |
| "Connaught has had continuing discussions with its lenders and other sources of finance with the objective of securing additional funding and a restructuring of the group's financing for the longer term," the company said in a statement to the London Stock Exchange. | "Connaught has had continuing discussions with its lenders and other sources of finance with the objective of securing additional funding and a restructuring of the group's financing for the longer term," the company said in a statement to the London Stock Exchange. |
| "The group now believes that the availability of additional funds from its lenders will not be forthcoming and, whilst it remains in discussions with other parties, the ability to provide an adequate solution to the funding issues the group faces has become increasingly uncertain." | "The group now believes that the availability of additional funds from its lenders will not be forthcoming and, whilst it remains in discussions with other parties, the ability to provide an adequate solution to the funding issues the group faces has become increasingly uncertain." |
| Connaught ran into serious difficulties over the past couple of months, after it emerged that a series of contracts would be loss making. | Connaught ran into serious difficulties over the past couple of months, after it emerged that a series of contracts would be loss making. |
| Royal Bank of Scotland recently provided Connaught with a further £15m in an attempt to keep the group going. | Royal Bank of Scotland recently provided Connaught with a further £15m in an attempt to keep the group going. |
| However, its bank creditors have now decided instead to put the business in administration, under UK insolvency procedures. | However, its bank creditors have now decided instead to put the business in administration, under UK insolvency procedures. |
| In his blog, Robert Peston writes: "In spite of the severity of the economic crisis that engulfed the UK in 2008, few listed businesses have collapsed. | In his blog, Robert Peston writes: "In spite of the severity of the economic crisis that engulfed the UK in 2008, few listed businesses have collapsed. |
| "In that sense Connaught, a FTSE 250 company which at one stage had a market value of well over £500m, is unusual." | "In that sense Connaught, a FTSE 250 company which at one stage had a market value of well over £500m, is unusual." |
| Shares in the Exeter-based company have lost about 90% of their value since late June, when it announced it had identified 31 contracts that had been deferred following the spending cuts announced in the Budget. | Shares in the Exeter-based company have lost about 90% of their value since late June, when it announced it had identified 31 contracts that had been deferred following the spending cuts announced in the Budget. |
| Do you work for Connaught or live in a Connaught property? Will you be affected by this news? |