On 20 December Ujima issued a Notice under section 40 of the Housing Act 1996 to the Housing Corporation and presented a winding-up petition to Court on the basis that it was unable to meet its debts as they fell due. On the 21 December, four secured lenders served Notices to the Housing Corporation that they had appointed a receiver. These actions triggered a 28 day Moratorium under Part I of the 1996 Act.

During such a Moratorium, the Housing Corporation may put proposals to Ujima's secured creditors to ensure tenants homes are not put at risk, protect public investment in Ujima's housing stock and safeguard the interests of Ujima's creditors.

The Housing Corporation put a proposal to secured creditors under which L&Q would receive a transfer of the assets and liabilities of Ujima, including all of Ujima's housing stock.  In preparing the proposal, the Housing Corporation considered all other potential options, and concluded that a transfer to L&Q was the best possible option to deliver our statutory obligations to tenants, creditors and the taxpayer.

Following the acceptance of the proposal by the secured creditors, the Housing Corporation appointed Grant Thornton as manager under Part I of the Housing Act 1996 to implement the terms of the proposal. The transfer of engagements has now taken place.   Accordingly, if you are a creditor or tenant of Ujima or have any other association with the business of Ujima, please contact London & Quadrant Housing Trust.