Company is unable to reach agreement with lenders and creditors over possible rescue package
Beleaguered property consultant Erinaceous has gone into administration.
The company, listed on the stock market, has appointed KPMG as administrators after failing to develop a rescue package that would have pulled it out of recent difficulties that saw it post a pre-tax loss of £3.9m for the six months to 30 June 2007, with debts of more than £220m.
In a statement to the stock exchange, the company said: “Given the extent of the challenges facing the group and the current state of the capital markets it has not been possible for the group to reach an agreement with its lenders and other creditors and therefore the board has now concluded, with regret, that it is necessary for the company to file for administration.”
The company added that it expects its insurance arm, Erinaceous Insurance Services Limited, to be sold to a company owned by the firm’s lenders.
The residential management division and property maintenance division remain outside of the insolvency process and continue to trade as normal.