Cosalt, the struggling Grimsby-based safety company for the oil and gas sector, has said that the firm's cash flow position has continued to deteriorate.
The company now has only £900,000 of bank facilities available, which represents sufficient working capital only until 30 November 2011.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"The board is also in the process of appointing restructuring advisers to assist management in assessing options available to the company for realisation of assets or refinancing."
The company's independent directors and advisers are currently in discussions with non-executive chairman David Ross, whose family has been involved with Cosalt for 50 years. On the 17 November he made an offer of 0.1p per share, valuing the company at £404,000. The current market capitalisation is approximately £1.86m, so the offer is at a huge discount. Cosalt's share price at 10:45am was 0.46p, down 40% on the day, 87% on the year and 99.82% over the last five years.
The share price lost 29.41% to 0.3p by 08:26.
NR
-
DIY pension investors take tax-free cash amid switch to ISAsSelf-invested personal pension (SIPP) investors are rushing to withdraw their tax-free cash and turning to ISAs amid fears of a pension tax raid in the Autumn Budget
-
12 ways pensions could be reformed in Budget – including an alternative to charging IHTPension savers could face new rules after the Budget if chancellor Rachel Reeves targets their pots to fill her own fiscal black hole – what potential pension changes could be on the way?
