Cosalt in dire straits
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.
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.
"The company is therefore now in urgent discussions with its major shareholders and banking partners," the firm said.
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
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Reeves warned against property tax shake-up – 3 ways it could backfire on first-time buyers
Rachel Reeves reportedly has her eye on high-end property taxes in the upcoming Budget, but there are concerns a shake-up could unintentionally hamper those trying to get on the housing ladder
-
Average Brits want to retire five years before they can – who has the widest retirement gap?
Brits are expecting to work for longer than ever but there are big disparities in the number of extra working years predicted. A small tweak could help close the gap