Cosalt, the marine safety business based in Grimsby, said today it is likely to go into administration by the end of February unless it can reach an agreement with its banks over its debts of £17m reported the Business Desk
The firm said that it has been unable to find alternative sources of funding and it is looking to sell its two main operations, Cosalt Workwear and Cosalt Offshore. However, the company needs the backing of its lenders and pension trustees to carry on trading.
In an update today, it said its banks, Royal Bank of Scotland and HSBC, had raised concerns that it would not have the cash available to continue to trade during a lengthy sale process.
It said in a statement: "The company has had and continues to have extensive discussions with existing and potential funders but no alternative source of funding is currently available to the group. In the event that the banks conditions cannot be met, in the absence of the banks agreeing an alternative course of action to enforcing their security, the directors consider that Cosalt plc (the parent company of the Cosalt Group) would be likely to enter insolvency proceedings on or before 28 February 2013."