Cosalt, the Lincolnshire based company which provides life jackets and safety harnesses for the oil and gas industry has seen its shares jump 28% this morning on news of a new credit facility.
The £5m overdraft is being provided by David Ross, who co-founded Carphone Warehouse but who has had a long time family involvement in Cosalt.
The company is near bankruptcy after taking on too much debt in the boom years up to 2008. Its share price in May 2007 reached 474p. It is now trading at 0.25p, a drop of 99.95%.
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David Ross, who has served as Chairman of Cosalt for the last two years, is attempting to take over the company for £400,000. The deal is by no means assured because other shareholders think he is partly to blame for the collapse in value.
Nevertheless, the £5m facility will, it is hoped, enable Cosalt to function until the 22nd of December when Ross hopes that his offer will be accepted.
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