In a statement, the firm said it had been in financial discussions with regards to its future and the restructuring of the Connaught Group since 29 July 2010. However, the company admitted that discussions to secure further funding had been unsuccessful.
The statement said: “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.”
The Royal Bank of Scotland had injected £15m to keep the company afloat. However this morning the company suspended its shares, as a result of a breakdown in potential financial rescue.
The firm said that an announcement would be made “in due course.”
Connaught ran into many difficulties over the past couple of months after it emerged that a series of contracts would be loss making.
It also suffered a major blow when it identified 31 contracts had been deferred following the spending cuts announced in the Budget.