Two housing associations have cancelled plans for a merger, months after the deal was put on hold due to regulatory concern.
Viridian and Asra had reached the advanced stages of discussions over forming a joint group, which was set to be named Viridianasra housing.
The deal was put on ice when Asra was placed on the regulator’s watch list in February, following difficulty meeting a call for security under a complex financial instrument known as a free standing derivative.
The two boards have now finally decided not to proceed with the partnership, ending months of uncertainty in both organisations.
A spokesperson for Viridian said the housing association was ‘not looking to enter into a new partnership in the near future’.
Matthew Fox, chief executive of the 16,000-home landlord, had left the organisation in July ahead of the merger, with Asra chief executive Matt Cooney due to take the reins of the new landlord.
Asra was downgraded to a non-compliant G3 for governance and a V2 for financial viability in April.
The regulator said it had been exposed to loan covenant breaches after failing to have cash or security to meet a margin call from a derivatives position.