Erinaceous goes into administration

Erinaceous has called in administrators after the struggling listed UK property services group failed to reach a refinancing agreement with its creditors.

In a statement on Monday, Erinaceous said its board had 'vigorously explored' all available options since mid January. 'However, 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'.

James Tucker and Myles Halley, both partners of KPMG, have been appointed as administrators of the company. The pair are working to sell the commercial property insurance business to a company owned by Erinaceous' lenders.

The residential management division and its subsidiaries) and as well as the property maintenance division remain outside the insolvency process and continue to trade as normal, Erinaceous said.