Erinaceous Delays Its Interim Results

Erinaceous has delayed its results announcement after revealing it is in emergency talks with lenders over breaches of its banking covenants.The group, which employs around 5,000 people, said lenders remained supportive and that it was hopeful of unveiling amended credit facilities by the time of its interim results on Tuesday.

It said the discussions with lenders were in relation to its credit facilities and "certain breaches of the covenants in its credit agreement".The company added: "Good progress towards reaching agreement with lenders on relevant waivers and facility amendments has been made....Discussions are continuing, the lenders have been supportive and the board intends to obtain proposed amendments prior to the issue of the company's interim results.

This so far hasn't come about as the company was due to announce its interim results yesterday in a stock exchange statement, the company said it now expected to announce them by the end of the week.

The city is braced for poor results from the firm, whose directors were in talks over a possible takeover earlier this year. Its share price has fallen more than 70% during the past four months

In its last annual results in March, Erinaceous said it had net debts of £152m, up from £67m at the end of 2005, due to acquisitions. The debt was provided by HBOS, Lloyds TSB and HSBC.