THE directors of Grimsby's only listed company, Cosalt Plc, have proposed the company is placed into administration.
It follows a warning posted to the City last week, and could spell the end for the 140-year-old firm, which started life as a co-operative serving the needs of the town's fishing industry.
With unserviceable debts of more than £17-million and an inability to source more funds, the company has requested Royal Bank of Scotland and HSBC appoint administrators.
Only a small office team have remained in Grimsby, with operations of the two remaining divisions based elsewhere.
Both were in the process of being sold, when concerns were expressed that there would not be enough time to consult shareholders on the deals – as required – with bank guarantees due to expire.
Today's development comes as the sale of the Aberdeen-based offshore arm had been agreed to Dunwilco (1793) Ltd, a company backed by NBGI Private Equity, the majority shareholder of ATR Group. ATR is a major operator in the energy equipment sector, and is also headquartered in Aberdeen.
Cosalt believes the administrators – when appointed – are likely to follow that sale through, while also looking to dispose of the workwear business, in Stockport and Barnsley, as a going concern.
Shares have been suspended in the firm since May 1 last year, due to the ongoing financial issues and inability to file completed accounts. Shareholders have been warned not to expect to receive any value for the shareholding.
It is expected that administrators will request the cancellation of the company's shares of 1p each from admission to the Official List of the UK Listing Authority.
As a result of today's request, the company said that 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 through the administration period.
For full story, see your Grimsby Telegraph tomorrow.
