Connaught Share Discussion Threads

[randy mandy] 07/9/2010 14:06

still in this or .... stuck in this?

[dancing piranha] 07/9/2010 14:05

Mellious,

I take it you are still in this?

[comedy] 07/9/2010 14:04

lol nice to see all these new faces popping in...sorry guys wake hasnt started yet..and i dont think there is any more money in the kitty to give you noble souls high tea after the wake...so please just move along...and find your next free meal elsewhere...:0 thank you

[moathunter] 07/9/2010 14:01

Feel sorry for its workers, esp. the labourers and those in the company share scheme (eek! correlated risk- income and savings in same entity).

[cockney sparrow] 07/9/2010 13:38

Have a look at YELL.

If it slips to single digits you could win on the bounce.

[herschel k] 07/9/2010 13:36

Ouch, sorry D.

I'm adult enough to know what I was doing - I took the risk cos I could afford it; it was a lose 600 quid or make several thousand quid gamble for me.

One I lost (for the moment, but I suspect for good).

[antic177] 07/9/2010 13:32

So who was it saying they spoke to the press officer and told them it was great they were coming close to a financing deal...? I said be wary then i got shot down. People chose their own fate.

[dorset64] 07/9/2010 13:24

In for about £3k, but hey don't tell the wife as she'll just have to not go on an Exeter shopping trip for a month or two lol.

As you say, live & learn but it was always a risky time for me to enter and one that I could afford to lose so, I gambled and it didn't pay off. Fell sorry for others not in the same situation as me though.

[herschel k] 07/9/2010 13:21

Hi Dorset,

Nope, still in and long SB is locked in until out of suspension.

They've already taken the money out of my SB account due to the suspension.

No great shakes - I've lost just over £600.

Live and learn.

H

[the_doctor] 07/9/2010 13:20

'I guess the auditors only go by from all the info they have from the company!.'

they had enough info
they were just in on the 'scam' - and possibly even suggested it to management
IMO

Again and again, auditors let these companies get away with murder, get paid, then stroll off when it all blows up.
More should end up like Arthur Anderson!

[the_doctor] 07/9/2010 13:19

chapchip - 7 Sep'10 - 13:08 - 4870 of 4877
the doc...you aint caught up in this too ??.

No! just interested in the story

[dorset64] 07/9/2010 13:18

Ah well, I took a gamble and it didn't pay off. The bright side is that I can write it off my tax bill but not good if either you needed the money or if your a long time holder from far north of yesterdays share price.

H, did you get out or were you still in? Trust you got out fella.

[diku] 07/9/2010 13:16

I feel sorry for the shareholders here...this is JRVS (mark2)!...

I guess the auditors only go by from all the info they have from the company!...

[ldmachin] 07/9/2010 13:14

£3+ a share to bust in under 3 months. Quite an achievement.

[ted1806] 07/9/2010 13:13

BARSCO

Radio four just said KPMG I think.

[spob] 07/9/2010 13:13

Who audits the auditors

and who audits the audits who audit the auditors

LOL

[honiton] 07/9/2010 13:13

company will be sold off piecemeal to its managers and thrid parties.

bits not sold will be wound up.

no dividend likely.

[honiton] 07/9/2010 13:13

company will be sold off piecemeal to its managers and thrid parties.

bits not sold will be wound up.

no dividend likely.

[katsy] 07/9/2010 13:09

Thanks the_doctor, I suppose the auditord won't face any legal actions yet again!

[the_doctor] 07/9/2010 13:05

1. Because the old valuation was based on an accounting 'lie' [auditors to blame once again!]
2. Because as a result of contract losses/ payment timing, they've run out of money
3. Putting 1 and 2 together has potentially resulted in a company that nobody will fund.

Answer may be to
a) go into admin and sell off what can be sold to repay debt holders
b) debt holders agree to a debt for equity swap, giving a new company that can survive.

[spob] 07/9/2010 13:03

Connaught on the brink as shares suspended
By Ed Hammond and Anousha Sakoui

FT

Published: September 7 2010 09:19 | Last updated: September 7 2010 09:19

Connaught on Tuesday moved to appoint administrators and requested trading in its shares be suspended, after the stricken social housing group said its lenders would not provide the funding it needed to restructure.

A person close to the company said the move to bring in the administrators was a "shock", but the banks hadn't given the support needed for the group to refinance.

EDITOR'S CHOICE
Accounting questions mar Connaught sell-off plans - Aug-19.Rok admits 'serious mismanagement' - Aug-11.Lloyds stands by stricken Connaught - Aug-12.Carillion eyes Gulf states for growth - Aug-26.Connaught faces further losses - Aug-06.Mears looks to win local work lost by rival - Aug-17..

In a brief statement, Connaught said the "availability of additional funds from its lenders will not be forthcoming."

The company added that, while it remained in discussions with other parties, "the ability to provide an adequate solution to the funding issues [it] faces has become increasingly uncertain."

The news comes at the end of two months in which Connaught's shares have crashed from 320p at the end of June to just 16½p at the close of trading on Monday.

KPMG, which has been providing restructuring advice to the lenders, is expected to be appointed as administrator on Tuesday.

However, one person close to the situation said not all of the company would be placed in administration.The parent company and the social housing groups are expected to go into administration, during which new providers will be sought for its contracts. The group's environmental and compliance units are expected to stay out of administration and eventually be sold.

The administration comes after lenders decided that some parts of the company were simply no longer viable

"The feeling is there isn't a credible business plan," said one source familiar with lenders' thinking.

Connaught's troubles started in June after it warned that 31 contracts would be affected as local authorities deferred capital expenditure. It cut profit forecasts for the current financial year by more than 20 per cent.

Since then the company has been at the centre of a seemingly endless flow of bad news, and in July Royal Bank of Scotland stepped in to help provide a short-term £15m overdraft facility after the company warned it was in urgent need of additional funds.

The bankers also hired specialists from KPMG to advise on a possible restructuring of Connaught's estimated £200m of debts.

[katsy] 07/9/2010 13:02

Sorry to all holders here. Don't know much about CNT but how can a company that was worth £500m and an all time high share price less than a year ago that also paid a divi earlier this year go from that to zero. Is it because of the banks not lending or what?

[ladyboyblap] 07/9/2010 13:01

smurfy
They have been Suspended Temporarily in the same way as Saddam Hussain was.

[barsco] 07/9/2010 12:55

Does anyone know who the administrators are?