Please visit http://www.companyrescue.co.uk/ for confidential help and insolvency advice or email keiths@ksagroup.co.uk

Thursday, 24 November 2011

Cosalt plc in debt talks

Shares in Cosalt fell 36% yesterday when the company announced that it did not have enough working capital to last the month.  The company said it had just £900,000 of banking facilities.  The company supplies safety equipment and protective workwear to offshore drillers in the North Sea.

Cosalt said that it was looking to appoint restructuring advisors to try and sell off assets or refinance its debts.  The debts of the company amount to £12.3m.  The chairman and biggest shareholder, David Ross, is in talks to buy the company and has offered £405,000 to take it into private ownership.  The value of the net assets would need to be independently valued to avoid accusations of there being a transaction at an undervalue and the business will need to be marketed according to SIP16 rules.

One option for the company might be to do a pre pack administration with the company being able to write off some of its debts.

This is the second publicly listed company that has asked for more money this week.  Of course the big one was Thomas Cook who have asked for a further £100m from their bankers to avoid them breaching their banking covenants.

No comments:

Post a Comment

Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.

Web Analytics