Cosalt warns over future as funds prove elusive
OFFSHORE workwear business Cosalt, which employs about 250 in Scotland, yesterday warned it faces insolvency by the end of this month unless it can reach agreement with its banks over its debts.
Heavily-indebted Cosalt said despite extensive discussions with existing and potential funders, no alternative source of credit was currently available.
Its £17 million facilities with banks including RBS ran out at the end of December.
Talks with potential buyers for its Aberdeen-based Cosalt Offshore division and its workwear arm, the Grimsby-based group’s two trading subsidiaries, are continuing.
Shareholders have already been warned that they are unlikely to see any return from a sale due to the level of the debts and pension scheme liabilities.
Late last year Cosalt reached a £2m settlement with businessmen Calum Melville, a former director of Dundee FC, and his brother Stuart over a legal dispute.
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