The BBC is claiming the company is now heading towards administration as its financial crisis intensifies.
A Stock Exchange announcement this morning stated: “On 29 July 2010, Connaught announced that it had agreed the terms of a short term overdraft facility.
“Since that date Connaught has had continuing discussions with its lenders and other sources of finance with the objective of securing additional funding and a restructuring of the Group’s financing for the longer term.
“The Group now believes that the availability of additional funds from its lenders will not be forthcoming and, whilst it remains in discussions with other parties, the ability to provide an adequate solution to the funding issues the Group faces has become increasingly uncertain.
“Accordingly, pending clarification of the Company’s financial position, Connaught has requested a suspension of the trading of its shares on the London Stock Exchange with immediate effect.
“A further announcement will be made in due course.”