Erinaceous Group files for U.K. administration; administrators to sell insurance division

By Caroline Salls

Pittsburgh, April 14 - Erinaceous Group plc's board said it appointed administrators for the company after it decided that the company's challenges and the current state of the capital markets leave it no choice but to file for administration, according to a news release.

James Tucker and Myles Halley, both partners of KPMG, have been appointed as the company's administrators.

The board said it has explored all available strategic options, including the possibility of refinancing the group's borrowings, sale options and an equity raising.

However, given the extent of the challenges facing the group and the current state of the capital markets, the board said it has not been able to reach an agreement with Erinaceous' lenders and other creditors.

Under administration, the administrators are expected to sell the group's insurance division, Erinaceous Insurance Services Ltd., to a company owned by the lenders.

The group's residential management division and property maintenance division are not part of the insolvency process, according to the release.

Erinaceous Group is Croydon, U.K.-based provider of commercial and residential property services and property insurance services.

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