Process of Appointment of Administrators

 

TIDMCNT 
 
RNS Number : 3161S 
Connaught PLC 
07 September 2010 
 

                          Connaught plc (the "Company") 
 
                    Process of Appointment of Administrators 
 
      Business as usual at Connaught Compliance and Connaught Environmental 
 
 
Following this morning's announcement regarding the suspension of the Company's 
shares, the Board is now providing an update. 
 
Since the end of July, Connaught has held discussions with its lenders and 
alternative providers of finance with the objective of securing additional 
funding and a restructuring of the Company's financing for the longer term. 
During this period, the Board of the Company has also continued to explore its 
options to improve the financial position of the Connaught group of companies 
(the "Group") and to realise value for the benefit of all stakeholders. 
 
These initiatives failed to reach a satisfactory conclusion in the time 
available and, following extensive discussions with the Group's secured lenders, 
it is now clear that sufficient support would not be extended to the Group as a 
whole to enable it to continue trading as a going concern. As a consequence, the 
Board is saddened to announce that it is in the process of appointing partners 
from KPMG as administrators of Connaught plc and its subsidiary, Connaught 
Partnerships Limited, which comprises its Social Housing Division. 
 
The Group's other main subsidiaries, Connaught Compliance Limited, National 
Britannia Holdings Limited, Fountains Limited and Connaught Environmental 
Limited (and their respective subsidiaries), which comprise the Group's 
Compliance and Environmental divisions, are not being placed into administration 
and will continue to trade normally.  An agreement with its funders is in the 
course of being negotiated and an announcement will be made shortly tomorrow 
regarding this. 
 
 
Enquiries: 
 
+------------------+--------------------------------------------+ 
| Paul Haines      | 01392 340667                               | 
+------------------+--------------------------------------------+ 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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