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Connaught housing group on brink of collapse
Business Digest: Firm is suffering from reluctance of local councils to spend money
British social housing group Connaught is reportedly about to call in the administrators after lenders refused to provide the funding it needed to restructure.
The news comes at the end of two months in which Connaught's shares lost more than 90 per cent of their value, closing on Monday at 16.7 pence. In June, the company warned that 31 contracts would be affected by the scaling-back by local authorities of spending plans.
KPMG is expected to be appointed as administrator today, however not all of Connaught is expected to go into administration: the group's environmental and compliance units are expected to remain unscathed and will eventually be sold.
Read a full report at Financial Times (registration required). ·
