Ian Forsyth, 13th April 2012
The board of engineering firm Cosalt yesterday said it had agreed the terms of a new short-term revolving credit deal of up to £1million provided by Oval, a company owned by its chairman David Ross.
This is in addition to the £7million of loans and £4.6million of bank guarantees already being provided by Mr Ross.
Cosalt said the new facility would be repayable by the end of this month and be used to support working-capital requirements while the company continues to work on securing a long-term financing solution with its banks and pension trustees.
Cosalt remains publicly listed after Mr Ross’s proposal to take it private was narrowly defeated in February.
He needed 75% of shareholders to back his plans at an extraordinary meeting, but he came up less than two points short.
Cosalt, which employs 250 people at its Aberdeen-based offshore division, said then that it would consider its options and what it needed to do to continue operating as a listed entity.