Cosalt debt declared unsustainable to City
LEVELS of debt continue to significantly restrain business operations of Grimsby-headquartered Cosalt Plc, and are not sustainable over the longer term, the company has said.
The interim management statement released by chief executive Trevor Sands yesterday told how although sales were in line with forecasts, pressures were being put on margins and cashflow, as discussions continue to find a financing solution.
They centre on the need for sufficient working capital and are taking place with chairman and majority shareholder David Ross, the group’s pension trustees and the banks.
In the four-and-a-half months under review, a period in which Mr Ross took a controlling interest but failed to win over private shareholders and de-list the firm, the shares have been suspended with Cosalt not in a position to publish an annual report and accounts.
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Mr Sands added: “The board is very focused on finding a solution for all parties involved in the discussions and will make a further announcement as soon as possible.”
In the period covered, Mr Ross has provided loans totalling £6 million, in addition to borrowings of £14.9 million, of which £6.6 million is being provided or guaranteed by him.