Erinaceous shares plummeted 47% today after the company announced it was in emergency talks with its banks regarding breaches of covenants.
The property one-stop-shop’s shares closed today at 57.75p, wiping £54.8m off the value of the company.
At time of writing, Erinaceous said it planned to go ahead with the announcement of its half year results tomorrow morning, but that it could not be certain that the results would be revealed.
In a statement to the Stock Exchange this morning, the company said: ‘Erinaceous confirms that it is in discussions with its lenders regarding the terms of its credit facilities and certain breaches of the covenants in its credit agreement.’
In its annual results published in March, Erinaceous said it had net debts of £152m, up from £67m at the end of 2005 due to its acquisitions process. The debt was provided by HBOS, Lloyds TSB and HSBC.
It said it had banking facilities at the end of 2005 of £215m.