Erinaceous, the troubled UK surveyors-to-buildings management group, inisted today that it is working on a range of options to save it from going under.

In a statement issued today, the company said that the new management team, led by interim chief executive, Tim Redburn, hoped to agree a recovery strategy with its bankers before Christmas.

This could involve the sale of its assets.

The statement was in reaction to an article in The Times yesterday which revealed that the company might go in to administration.

Speaking to Times Online, Mr Redburn said: "It's too early to say what the outcome will be, and at present we don't rule anything in or out. Naturally, we will be discussing our proposed strategy with our bankers once we're clearer on the best course of action for the company.

"We're anxious to reach a satisfactory conclusion as soon as possible and remove the uncertainty which has surrounded the company over the past few weeks."

But the company's bank lenders are conducting an independent review of that strategy review, according to its latest accounts, prompting concern that they may yet call in their loans through some sort of insolvency procedure.

Erinaceous was valued at £400 million earlier this year as a four-way bid battle loomed.

Its shares were changing hands for only 161/4p, giving it a market value of £17 million.

Since the summer, several suitors have walked away and the company has breached its loan covenants.

The value of both commercial property and businesses involved in the sector has also dived as the cost of debt has soared.

The company, best known for its Dunlop Haywards surveying arm, is lumbering under £210 million of net debt on punitive rates of interest of nearly 10 per cent.

Its lenders, HBOS, HSBC and Lloyds TSB, increased the repayment cost in September from 1.25 per cent to 3.25 per cent over Libor. Delivering half-year figures two months ago the company's board headed by Nigel Turnbull warned investors that was a "material uncertainty which may cast significant doubt as to the group’s ability to continue as a going concern."

Mr Turnbull hired Tim Redburn, a company turnaround specialist, as his new chief executive this month.

Dominic Lavelle has joined from Alfred McAlpine as finance director.

Close Brothers, the investment bank known for its strong restructuring team, and KPMG, the accountancy firm also boasting a large corporate recovery division, are advising the board.

The company's latest internal forecasts about cashflow, made at the end of September, had depended in large part on selling property assets and striking development agreements.

However, the head of one of the company's key property divisions quit yesterday.

Neil Bellis, a founder and former chief executive, resigned alongside Lucy Cummings, his sister-in-law, who is also a company founder.

They will collect a combined £730,000 payoff and retain a combined 15 per cent shareholding in the company.

The company told investors two months ago that it was likely the property transactions division would "have a substantially more profitable second half compared to its performance in each of the three preceding half-years", when it made about £5 million profits during each period.

Erinaceous has yet to announce any significant property deals since September.

However, prices of commercial property have fallen by about 10 per cent since September, transaction volumes have dried up and agents are predicting further falls over the coming months.

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