Struggling property services firm Erinaceous said this morning it had delayed the announcement of its interim results because it was still in crisis talks with its bankers.

The property one-stop-shop said it had not yet concluded discussions with its lenders over breaches of its banking covenants.

In a statement to the Stock Exchange Erinaceous said: ‘The board of Erinaceous now intends to announce its interim results as soon as possible but in any event no later than 28 September 2007.’

Erinaceous shares dropped 10% on opening this morning to 52p.

Yesterday it said it was discussing possible ‘waivers’ and ‘facility amendments’ relating to its debt.

In its 2006 annual report, the company said it had net debt of £152.7m, up from £67m at the end of 2005, provided by HBOS, Lloyds TSB and HSBC.

It said it had agreed a five-year revolving credit facility with these banks in July 2006, at an interest rate of 1-1.25% above the London Inter-Bank Offered Rate (LIBOR).

The liquidity crisis in credit markets has seen three-month LIBOR shoot up to ten-year highs. The interest rate on loans pegged to LIBOR is adjusted every three months, in December, March, June and September.

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