Erinaceous’s share price fell by a third yesterday as the prospect of a debt-for-equity swap increased. Financial Times, Daily Telegraph

The property services group, confirmed it was in talks with bankers on a refinancing.

Possible solutions include a debt-for-equity swap in which the group warned “it is probable that existing shareholders will see the value of their holdings significantly diluted”.

Erinaceous is expected to put a plan to its banks by the end of the year which may include disposals to pay down debt. Net debt, which stood at £168m at the end of June, is believed to have risen to more than £200m.