10 Jan 2013 07:00
Cosalt plc
("Cosalt" or "the Company" or "the Group")
Company Update
Cosalt plc notes the recent speculation regarding the Group's affairs and potential disposals of Group businesses. The Company gave an update on 31 December 2012 regarding its financial position and the on-going discussions with its lenders and the trustees of the Group's main defined benefit pension scheme with regard to a solution to the Group's financial position.
The Company also confirms that whilst those discussions are not yet concluded, it is in discussions with third parties regarding the sale of the operating divisions, Cosalt Offshore and Cosalt Workwear. Discussions with all parties are continuing and there can be no certainty that any agreement will be reached, either with creditors regarding a solution to the Group's financial position or with potential acquirers of the operating businesses.
The Directors remain focused on reaching a solution which will ensure the long term future of both operating businesses; safeguarding jobs and ensuring continuity of service to customers and suppliers. The Directors also acknowledge the important role of these two businesses within their local communities. However, the Directors believe it is unlikely there would be any value attributable to shareholders due to the level of the Group's net indebtedness and pension scheme liabilities.
Enquiries:
Cosalt plc Trevor Sands, Chief Executive Officer | Tel: +44 (0) 1472 725560 |
Cardew Group Tel: +44 (0) 207 930 0777
Tim Robertson / Tom Horsman