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Ujima Housing Association

Volume 470: debated on Tuesday 15 January 2008

23. To ask the Secretary of State for Communities and Local Government if she will make a statement on the financial position of Ujima Housing Association and consequent action taken by the Housing Corporation under the Housing Act 1996. (178407)

On 20 December, Ujima issued a statutory notice to the Housing Corporation and sought a winding up order from court on the basis that it was unable to meet its debts when they fell due. Statutory notices were also issued by some secured creditors of Ujima on 20 December (in relation to defaults against credit agreements) and on 21 December (confirming the appointment of receivers). This latter action triggered a Moratorium under Part I of the Housing Act 1996, during which time the Housing Corporation may put proposals to secured creditors to safeguard the interests of tenants, taxpayers and creditors.

Following the acceptance of the Housing Corporation's proposal by the secured creditors of Ujima Housing Association, the Housing Corporation on 14 January, appointed Grant Thornton as Manager under the 1996 Act to implement the transfer of Ujima's assets and liabilities to London and Quadrant Housing Group. We anticipate that the transfer should be complete this week.