Major creditors of collapsed housing association Ujima have agreed to transfer the business to a rival landlord.
The Housing Corporation said Ujima’s creditors had accepted a plan to force a sale of the housing association to London & Quadrant, despite the fact its shareholders failed to approve the move.
The transfer will be the first time the corporation has used powers under the 1996 Housing Act that allow it to act to protect tenants’ interests.
Ujima, formerly a top five developing association, was put under supervision in October. It was declared technically bankrupt in December after creditors demanded the repayment of £167m of loans.
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