With the Cosmopolitan Housing Group (CHG) looking close to going bust.
WHAT could be the outcome?
I have read that the HCA may have too instigate a ‘moratorium’ – a 28-working day stay of execution during which time it will attempt to broker a deal with the ‘secured creditors’ of the social housing business, such as banks, to ensure the social homes can be protected from the insolvency process.
This matters for other housing providers as this would be the first time a large association would have gone to the wall. It would give lenders and investors pause for thought when pricing – or deciding whether to provide – finance to social landlords. The damage to CHG’s business may already have been done, but the events of the next few weeks will determine just how far the shockwaves travel.