This morning the troubled housing maintenance contractor said it had agreed with lenders the terms of an extra £15m short term overdraft facility.

This overdraft is on top of its current £200.6m bank facility.

Chairman Sir Roy Gardner said Connaught needed further funds in part because of “additional pressure” from suppliers and subcontractors.

Earlier this week Connaught warned it would breach its banking covenants as debts soared above the £120m previously predicted.

The news sent the contractor’s share price into a tailspin as three-quarters of its value was wiped out in minutes with shares dropping 75% to 23.3p

Banks have also agreed to defer interest and principal payments due on its existing facilities in July and August

Connaught said it was continuing talks with its lenders about restructuring its finances for the longer term.

Sir Roy said: “We are delighted by this tangible evidence of support from our lenders.

“We will now seek to put in place arrangements, which will leave Connaught on a more secure footing for the longer term.”

Connaught has also confirmed that it received “requests for information” from the Financial Services Authority but added that there was no “formal investigation” under way.

The City watchdog is understood to be concerned about whether Connaught fully disclosed its financial problems to investors ahead of last month’s shock profits warning.