Regulatory Story
Go to market news section View chart   Print
RNS
Cosalt PLC  -  CSLT   

Proposed Administration

Released 11:39 15-Feb-2013

RNS Number : 0007Y
Cosalt PLC
15 February 2013
 



Cosalt plc

 

Proposed administration, Sale of Operating Companies and cancellation of listing

 

 

Cosalt plc ("Cosalt" or "Company") announces that further to the announcement on 7 February 2013 regarding funding and potential disposals, the directors of the Company ("Directors") have been unable to identify any alternative source of funding or to reach any alternative agreement with the Company's existing lenders and the trustees of the Cosalt Group's main defined benefit pension scheme ("Pension Trustees").  Accordingly, the Directors have today requested the Royal Bank of Scotland plc and HSBC Bank plc (together the "Banks") to appoint administrators to the Company pursuant to the terms of the security held by the Banks over the Company's assets. 

 

The Directors expect that the administrators will be appointed to the Company imminently and that, following their appointment, the administrators will seek to sell the Company's assets, including the shares in Cosalt Offshore and Cosalt Workwear, in order to minimise potential losses to the Company's creditors.  An agreement for the sale of the shares in Cosalt Offshore has been negotiated with Dunwilco (1793) Ltd a company backed by NBGI Private Equity, the majority shareholder of ATR Group.  The Directors understand that the administrators will sell Cosalt Offshore to Dunwilco (1793) Ltd on the basis of the terms negotiated immediately following their appointment, with the business continuing to trade as normal, and all employee, customer and supplier contracts and obligations remaining in force.  The Cosalt Workwear business will be unaffected and will not be placed into any insolvency process.  Instead, the administrators of Cosalt plc will look to sell the shares it holds in Cosalt Workwear to a third party.  As a result no employees, customers or suppliers are expected to be materially affected and all of the group's trading subsidiaries should continue to trade as usual

 

The Directors do not expect that the disposal of the Company's assets by the administrators will result in shareholders receiving any value for their shareholding.

 

The Company's shares have been suspended since 1 May 2012.  It is expected that, once appointed, the administrators, on behalf of the Company, will request the UK Listing Authority to cancel the Company's ordinary shares of 1p each from admission to the Official List of the UK Listing Authority.

 

 

ENDS

 

Enquiries: 

Cosalt plc                                                                                  Tel:  +44 (0) 1472 725 560

Trevor Sands, Chief Executive Officer                                       

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
MSCSFMFFIFDSEDE
Close


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

 


Proposed Administration - RNS