Restructuring experts to be appointed at Cosalt
COSALT is in “urgent discussions” with its major shareholders and banks after revealing today it only has a week’s working capital remaining.
The offshore safety equipment provider, which last week was the subject of a takeover approach from its chairman David Ross, said today it only has £900,000 of bank facilities still available to it.
Cosalt’s share price plunged by more than 50% this morning on the news.
Grimsby-based Cosalt said its cash flow since Mr Ross made his approach had “continued to deteriorate”.
“The company is therefore now in urgent discussions with its major shareholders and banking partners,” Cosalt said.
“The board is also in the process of appointing restructuring advisers to assist management in assessing options available to the company for realisation of assets or refinancing.
“The independent directors and the company’s advisers continue to progress discussions with Mr Ross and his advisers relating to Mr Ross’ possible offer.”
Mr Ross, the co-founder of Carphone Warehouse, said last week he would be prepared to pay 0.1p for each share in the business, which also offers workwear.
The approach valued the business at under £500,000.
