Talks continue over Cosalt’s future

Shareholders in the company recently rejected Mr Ross’s bid to de-list Cosalt.

Cosalt, which serves the offshore oil and gas sectors and makes workwear, employs about 360 staff.

In a statement issued today, Cosalt said: “Further to the announcement made on April 12 2012, the board of Cosalt has agreed with Oval, a company wholly owned by David Ross, an extension of one month to May 31 2012 for repayment of the short term £1m credit facility provided by Oval. The company is continuing discussions with David Ross, and the group’s pension trustees and its banks, to secure a long term financing solution to ensure it has sufficient working capital to sustain the business.

“Any such solution is expected to involve the issue of new equity share capital. Whilst the board has continued to progress these discussions, their outcome remains uncertain, and the group is not yet in a position to publish its report and accounts for the 12 months ended December 31 2011 by April 30 2012, as required by disclosure and transparency Rule 4.1.3.

“Accordingly, the company has requested that its ordinary shares be suspended from trading pending publication of its audited accounts. A further announcement will be made as soon as possible.”