Ujima's name 'to live on' as part of L&Q transfer

Ujima Housing Association says it is hopeful its name and good work within the black and minority ethnic community will live on despite the likelihood that the organisation in its current guise is to be wound up.

The Housing Corporation has proposed that the whole of Ujima's business, including assets, liabilities, staff and properties, be transferred to London & Quadrant Housing Trust.

However, London & Quadrant has stated that if the proposed transfer does go ahead it will establish the Ujima Foundation, which will be set up to fund a continuing stream of work targeted on BME Mental Health and BME leadership.

Ujima has issued the following statement in regard to its current position: "Since the Special General Meeting on 17th December, the Ujima Board has met with its secured lenders and with the Housing Corporation in order to discuss the options available.

"The Board and lenders have concluded that the best way of securing continuity of services to residents and a satisfactory outcome for lenders and creditors is for the Housing Corporation to use its Moratorium powers under the 1996 Housing Act. These powers have to be triggered by either the Board or by lenders.

"At the request of lenders, Ujima issued a Section 40 Notice to the Housing Corporation and then presented a petition before the Court for the winding up of Ujima on the basis that it is unable to meet its debts as they fall due.

"On the 21st December, four secured lenders served Notices to the Housing Corporation and then took the action necessary to appoint a receiver. Their action has triggered a 28 day Moratorium.

"The Housing Corporation has announced that it will use its powers under Section 44 of the Act to make proposals for the future of Ujima. It will consult with Ujima as well as with secured lenders and the FSA and will advise tenants of the action it is taking. If all the secured lenders agree with the proposals then they become binding.

"The Housing Corporation proposes that the whole of the business of Ujima (assets, liabilities, staff and properties) will be transferred to London & Quadrant Housing Trust. This is substantially the same proposal as the Board placed before the shareholders on 17thDecember.

"Although not required to do so by the terms of the Housing Corporation’s proposal, London & Quadrant has stated that, if the transfer of Ujima is approved, then it will establish the Ujima Foundation. This will fund a continuing stream of work targeted on BME Mental Health and BME leadership.

"The Board believes that the Housing Corporation’s proposals are in the best interests of Ujima’s residents. It will secure continuity of current services and offers the best prospects for improvements in the quality of services provided.

"The Board also believes that these proposals are in the best interests of secured and unsecured creditors. Accordingly, the Board has now notified the Corporation that it fully supports these proposals."