Cosalt in danger of administration
Oil, gas and renewable energy firm, Cosalt, is in danger of going into administration following weak sales in its wind energy division.
The Yorkshire-based company warned of losses earlier in February, and submitted a proposed administration notice on the stock exchange late on Friday morning.
Cosalt said it expected directors from the Royal Bank of Scotland and HSBC to appoint administrators “imminently”, after admitting its future was uncertain and debts could result in the company’s failure.
All the business’ assets are expected to be sold off, including shares in Cosalt Workwear and Cosalt Offshore to minimise losses for the firm’s creditors, although the businesses will not be affected by the insolvency.
An agreement to sell shares to Edinburgh-based Dunwilco (1739) has already been negotiated, and the firm’s directors said they understand Cosalt Offshore continue to operate as usual once bought by the Scottish company.
Cosalt’s statement said: “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.”