Connaught Share Discussion Threads

[dancing piranha] 07/9/2010 23:12

Respect to Simon Cawkwell, he said this company was trading on thin air several years back!

[boffster] 07/9/2010 22:54

Greater things are yet to come - It's no wonder our country is in such a state when its full of types like you who spend all their time gloating at other's misfortune. Why not go out and do something constructive with your life.

And no, I'm not a shareholder.

[still waiting] 07/9/2010 22:35

dnfa has a good point there.

with other co's finances in perilous positions those that did have fat supply contracts may start to topple like a deck of cards.

Any large plumbing merchants etc you know of...

[dnfa1975] 07/9/2010 22:25

Do Topps Tiles (TPT) and Carpetright have a contract supply to the social housing sector via Connaught?

[greater things are yet to come] 07/9/2010 22:23

0p




>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> LOL !!!!!!!!!!!!!!!!!

[dnfa1975] 07/9/2010 22:22

Do Topps Tiles (TPT) and Carpetright have a contract supply to the social housing sector via Connaught?

[dnfa1975] 07/9/2010 22:13

quite good for the Lib Con coalition as they dont want to look after these pesky chavs that live in council houses

[reddish tinge] 07/9/2010 21:30

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.

[numbercruncher2] 07/9/2010 21:25

Well I knew this was a punt but you always think "maybe this could turn around and I can make some money". I've lost a 5 figure sum and to be honest this probably means my investing days are over, cant see I can make this money back. Well done to those who sold out in time. A hard lesson to learn. Good luck to all

[megsta] 07/9/2010 21:19

MattU11 - probably won't get anything back. Like the other poster - the monies will go towards fees and paying back creditors before shareholders get anything. The parts of the business that remain will likely be sold off to pay off the debt. Shareholders may get some return, but not likely for 18 months+

[hvs] 07/9/2010 20:53

Its a bit like a funeral with all these messages of condolonces on here.

Did we get one from the Board of Directors or PWC ?

Anyone know where the memorial services will be held ?

[kammi1] 07/9/2010 20:48

Guys very sorry about your loss.Hope ypu make money elsewhere.
Best Wishes
Kammi

[pahee2] 07/9/2010 19:59

All over ,sorry for cnt shereholders

[fishermans friend] 07/9/2010 19:32

Made a very small overall loss here. Just been watching the news and the real losers here look like being the employees, they are the folk to feel sorry for.

Once again massive questions marks against the auditors. Seems the company were taking in future potential profit as actual profits and not including a number of costs. You would have thought that serious questions about this would emerge from an audit, but then again it would not be the first time the auditing profession have had the wool pulled over their eyes.

Interesting scenario that part of the business may not go into administration. You would think that if the administration part of the business would be able to 'fund' creditors then the part not in administration would still be owned by shareholders (with hope for the pi's). However, I suspect that a party (maybe a management buyout with the backing of bankers) will pay for that part of the business at a price that still wipes out the pi. Maybe cynical but .....

[paulmhammond] 07/9/2010 19:21

Oh and by the way, I was never short here, I was actually looking to buy in at some point, but I did try and warn people, most of whom (Linslader in particular note) simply would not listen. I feel really sorry for long termers and staff but not for the short term gamblers who should have sussed out the risks properly.

[barsco] 07/9/2010 19:20

The subsidiaries not in admin will only be traded or sold off to repay some of the debt.

[paulmhammond] 07/9/2010 19:18

MattU11,

The reason they are keeping certain subsidiaries alive (with the current management) is a move by the administrators to get the best price for those businesses. As this company is seriously distressed, no-one will be wilingl to pay over the odds, so it will only be a drop in the ocean of their debts when they are sold, so same result I'm afraid is that you'll get nothing back from this situation. Even if I'm wrong and you do get something back (99.9% certain you won't) then don't hold your breath. It will take one year from today for the firm to be liquidated and then up to another year to pay any unsecured creditors, so about 2 years from now, you might get a very small payout.

Paul

[mattu11] 07/9/2010 19:08

Thanks Paul, but they stated that only certain subsidiaries are being placed into administration, not all? I'm still not sure how that works - is it just a technicality of who will be running the subsidiaries when in administration?

[0verzeal] 07/9/2010 19:04

Bad Luck for Chilean Miner who had Connaught Shares.

[paulmhammond] 07/9/2010 19:02

MattU11,

I think as you own shares in Cannaught PLC, and that is going into administration then it is pretty much end of the road. In an administration, any funds that are raised from selling parts of the business are applied to debts in a strict order:

1. The fees and charges of the liquidation/bankruptcy.
2. Debts due to preferential creditors,. These debts are set out in the Insolvency Act 1986 and include wages owed in the four months before the date of the insolvency order and contributions to occupational pension schemes.
3. In company cases, any creditor holding a floating charge over an asset, such as a debenture.
4. All unsecured creditors.
5. Any interest payable on debts.
6. In company cases, the shareholders.

So with debts of £220m, I'll be extremely suprised if you'll get a penny back, in these situations, it's very rare.

It's not great news for you, but hope the info helps.

Paul

[dnfa1975] 07/9/2010 18:58

Distraught : Coleen Rooney distraught at the developments at Connaught

[webshares] 07/9/2010 18:53

sorry for anyone that was invested here... very risky in the last month (obviously)

I've been burnt before, like most people have. everyone has a horror story form investing!! but swallow the loss, plenty more money to be made elsewhere.

[algernon2] 07/9/2010 18:53

Amen to that Hvs.
We need Auditors to be more like forensic accountants and be fully trained in spotting pending death and hidden poisons.
The days of sloppy and shallow auditing should be over.