Cosalt to shut wind turbine operation

COSALT is to close down its loss-making wind turbine business as it seeks a way to avoid insolvency.

Yesterday the Grimsby-based marine safety business warned it is likely to go into administration by the end of February unless it can reach an agreement with its banks over its debts of £17m.

While it is continuing talks to sell its two main operations, Cosalt Workwear and Cosalt Offshore, the group has decided to shut Cosalt Wind Energy (CWE), in which it has an 80% stake.

CWE, which installs and services wind turbines, made a loss of £503,000 in 2011 on sales of £932,000 and Cosalt said its sales have declined and losses continued in and CWE now owes it £812,000.

In a stock market statement, Cosalt said: “The financial position of the Cosalt Group, which includes CWE, remains uncertain and as a result the directors of CWE have decided that CWE should cease trading and have prepared the accounts for CWE on a non-going concern basis.”

Cosalt now needs to secure the agreement of its lenders and pension trustees to achieve the sales of the workwear and offshore operations and for it to continue trading while it seeks backing from its shareholders for the disposals.