Administrators are set to be appointed at Cosalt after the marine safety business today admitted it had failed in its attempts to safeguard the future of the company. The Grimsby based business confirmed last week that it was likely to go into administration by the end of February unless it could reach an agreement with its banks over its debts of £17m. However, the business has told the Stock Market that it has been unable to identify any alternative sources of funding, reach agreement with its lenders or pension trustees.
As a result, the Directors have asked its lender to appoint administrators to the company. Cosalt has confirmed that it expected administrators to be appointed “imminently” and that following appointment the administrators will look to sell its assets in order to minimise potential losses to the company’s creditors. It is understood that Cosalt Offshore is to continue trading as normal and the Cosalt Workwear business will be unaffected and will not be placed into any insolvency process. The business has said it did not expect the disposal of the company’s assets to yield any value for its shareholders and once administrators have been appointed, Cosalt’s listing will be cancelled.