Banks say they will provide ongoing support while board seeks solution to financial problems

Troubled property consultant Erinaceous has said that its banks have committed to finding ongoing funding for the group, which has been plagued by losses and boardroom turmoil.

However, the company said it was “highly unlikely” that any value could be attributed to its existing ordinary shares, regardless of whether or not its plan to rescue the company is successful.

In a statement to the stock exchange this morning, the company said: “The group’s banks have committed to provide ongoing funding to the group and the board is in the advanced stages of a plan to achieve a solvent financial solution.”

The company is currently considering a sale of its Insurance Services division, as part of its strategic review. The sale would raise an estimated £100m to help ease the financial burden on the company, which posted a pre-tax loss of £3.9m for the six months to 30 June 2007, and has debts of more than £220m.