Troubled property services group Erinaceous has seen its shares hit again, after more details emerged of its financial problems.
After a profit warning at the beginning of the month and the subsequent resignation of two directors, founder Neil Bellis and chief operating officer Lucy Cummings, came more bad news for shareholders today.
The new management team said the company has an unsustainable level of debt, and one way to resolve that was through a debt for equity swap. It is talking to its banks at the moment and warned that any such deal would significantly dilute existing shareholders.
Erinaceous shares, which have fallen around 97% this year, today lost a third of their remaining value, dropping to just 9.46p. It seems a very long time since the company was attracting takeover interest.
In fact, it was only in October that property entrepreneur Vincent Tchenguiz finally decided he did not want to make a bid for the business, at a time when the shares stood at around 34p.
