Entu negotiating with last remaining interested party

Shares of Entu hit the skids after the company announced it failed to conclude a deal to refinance the group with its preferred investor, forcing it to proceed with urgency with the one remaining interested party.

Previously, the company had said it received several approaches and that with the support of its existing lenders it was moving ahead on negotiations with a "small number" of interested parties.

Furthermore, on Wednesday management repeated that all of the proposals put forward attributed little value to the company's equity.

"Discussions with the preferred party have failed to reach a conclusion although discussions with one remaining party are continuing. The Company is undertaking these discussions as a matter of urgency given the need to bring financial stability to the Group in the very near future," the company said in a statement.

Even should the negotiations suceed, Entu said it expected a further increase in its level of debt, but otherwise the likely result would be the firm going into administration with the trading businesses being sold.

In parallel, the group anounced a review of its RRSA service which it had recently stopped providing.

Entu's board expected to provide a further update shortly, but added "there is no certainty that any of these proposals, or any alternatives, will be ultimately successful."