Swan Housing Group has breached lending agreements and only has enough cash to last until December, it has told investors.

The troubled housing association, which breached a regulatory standard last year after losing control of development costs, is expected to merge with housing association giant Sanctuary on 30 November.

In an investor update the Essex-based registered provider said it currently holds £24.3m in cash, which it projects will only be enough to fund its subsidiaries until early December, shortly after the expected merger date. It said it has appointed advisers to scrutinise whether its spend is ‘appropriate’.

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