Cosalt in talks to offload divisions

COSALT has revealed it is in discussions to sell two of its operating divisions.

Reacting to what the marine safety business described as speculation, Cosalt said talks were taking place with potential suitors over Cosalt Offshore and Cosalt Workwear.

Cosalt also said discussions regarding its future – the group is presently beholden to chairman David Ross, its banking lenders and the trustees of its main defined benefit pension scheme – were ongoing.

Commenting on the situtation this morning, Cosalt said: “Discussions with all parties are continuing and there can be no certainty that any agreement will be reached, either with creditors regarding a solution to the group’s financial position or with potential acquirers of the operating businesses.

“The directors remain focused on reaching a solution which will ensure the long term future of both operating businesses; safeguarding jobs and ensuring continuity of service to customers and suppliers.

“The directors also acknowledge the important role of these two businesses within their local communities. However, the directors believe it is unlikely there would be any value attributable to shareholders due to the level of the group’s net indebtedness and pension scheme liabilities.”