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DJ Connaught Drafts KPMG For Restructuring Advice--FT

DOW JONES NEWSWIRES

LONDON (Dow Jones)--U.K. support-services firm Connaught PLC (CNT.LN) has appointed specialists from accountancy firm KPMG LLP (KPM.XX) to advise it on a potential debt restructuring, the Financial Times reported Saturday, citing people close to the situation.

The newspaper said Connaught, which offers services such as social housing maintenance, is estimated to have around GBP200 million of debt.

Earlier this week, Connaught warned it will breach its banking covenants and its year-end net debt will be "significantly in excess" of the GBP120 million it previously forecast, and Thursday said it has agreed to terms on a GBP15 million short-term overdraft.

The Financial Times added that Connaught had GBP54.9 million of private-placement notes as of the end of February and said the investors that hold these notes have hired specialists at law firm Bingham McCutchen to advise them, again citing people close to the situation.

Newspaper Web site: www.ft.com

-London Bureau, Dow Jones Newswires; +44 (0)20 7842 9269



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July 31, 2010 05:18 ET (09:18 GMT) Copyright (c) 2010 Dow Jones & Company, Inc.