Cosalt struggles to stay afloat
Cosalt is struggling to stay afloat
UK based marine safety company Cosalt is in financial trouble and seeking funds to be able to continue trading - but it appears that there may be a glimmer of hope after a crisis meeting held yesteday.
The news that the company was in crisis was originally reported by the Grimsby local press last week and warned that the company only had enough funds to continue trading until the 30 November.
The company’s board has been speaking with local multi-millionaire and Cosalt chairman, David Ross, about obtaining funding to keep the company afloat.
A spokesperson from Cosalt’s PR firm, the Cardew Group, talked to Maritime Journal and indicated that yesterday's meeting was positive.
A statement sent out shortly afterwards said: “The board is continuing to manage the Group’s working capital position in order to remain within its available banking facilities and is grateful for the support of the Group’s customers and suppliers. The board is also maintaining an ongoing, constructive dialogue with David Ross regarding his financial support during the period up until 20 December 2011, the earliest date by which Mr Ross’ offer could be declared unconditional.”
This suggests that the company may have the funds it needs to continue trading for the next few weeks, at least.
Our sister magazine, Boating Business reported recently that Mr Ross owns 15% of the firm and has made an offer to the board that values the remaining share of the company at £404,000 – a figure doubted by some.
The Cosalt marine division specialises in safety wear for the offshore, gas and renewable sectors and was acquired by the Survitec Group back in August when it was rebranded as Survitec Service and Distribution. Survitec has commented that business and outlets are not affected by the current Cosalt crisis.
Article first published in The Motorship
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