January 28, 2009 / 9:32 AM / 10 years ago

CORRECTED - UPDATE 1-Ennstone shares suspended, sales talks falter

(Corrects fifth paragraph to show company’s UK operation has enough cash to see it through to the end of March, not next month)

* Disposes of non-core assets

* Enough cash for UK businesses till March

(Adds detail)

LONDON, Jan 28 (Reuters) - British construction materials group Ennstone Plc’s ENN.L shares were suspended on Wednesday after it said the chance of sales and refinancing talks concluding successfully had “diminished greatly”.

The group said it has disposed of some non-core assets in the UK and US to provide short-term working capital while discussions continue.

Plans were announced in December for a sale of a substantial part of the group’s UK businesses or the group as a whole.

“Recent developments in these discussions, however, have meant that the likelihood of successfully concluding a solvent proposal for Ennstone plc and the group as a whole has now diminished greatly,” the company said in a statement.

The company’s U.S. unit has suspended interest charges to its lenders, it said, while in the UK the group said it believed it had sufficient cash headroom to get it through to the end of March.

“Discussions are continuing to seek a solvent solution for Ennstone’s UK and Polish subsidiaries, expected to be announced in the near future,” the company said. (Reporting by Paul Lauener; Editing by Rosalba O’Brien)

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