Erinaceous placed in administration

by Gill Montia

Story link: Erinaceous placed in administration

Erinaceous, the property services company, has been placed in administration.

It is understood that KPMG has been appointed administrators and that creditors are likely to take control of some the group’s businesses, including insurance subsidiary EIS, which provides cover for commercial property and controls around £250 million in gross written premiums.

In January, the group put EIS up for sale, after approaches had been received from a number of private equity and insurance firms.

Zurich emerged as a leading bidder but negotiations apparently broke down over price.

Last autumn, Erinaceous delayed publication of its interim results, having breached its banking covenants.

The firm’s founders, Nigel Bellis and Lucy Cummings, resigned as directors and a new management team was installed which has since been struggling to refinance debts of around £220 million.

Attempts have been made to raise capital through the sale of assets, and a management buyout has been considered,

However, shares were suspended this morning at 1.65p, valuing the company’s equity at £1.77 million. In March 2006 Erinaceous’ shares peaked of just over 400p.