Cosalt Plc - in Administration

Cosalt Plc – in Administration ("the Company")

David Kelly and Andrew Ross were appointed joint administrators of Cosalt Plc on 15 February 2013.

The Company is a non-trading holding company and has 100% shareholding in GTC Holdings Limited and Cosalt Offshore Norway A/S (the “Offshore” business). These companies specialise in the offshore services market in the UK and Norway providing services including repair, refurbishment and replacement of lifting equipment; manufacture of ropes and slings; tooling hire; sale and maintenance of lifeboats; rental and service of rigging lofts; and inspection services.

The Company had been facing severe difficulties meeting its financial obligations, and this had started to impact on its trading subsidiaries. Having run out of alternative options, it sought the protection of administration. The appointment was made by the secured creditors at the request of the directors.

After appointment we immediately completed a sale of the Offshore business to Dunwilco (1793) Limited (a company backed by NBGI Private Equity) and they continue to trade normally under separate ownership.  The sales process had been running for a few months prior to our appointment.   Full disclosure of the sale can be downloaded here, with the stock exchange announcements referred to here.

The joint administrators are now pleased to announce the sale of the Company’s 100% shareholding in Ballyclare Limited (the “Workwear business”) which completed on 5 March 2013. A press release confirming the sale can be downloaded here.

Statutory Duties
The administrators are undertaking their statutory duties in respect of the Company and cannot enter into correspondence with shareholders regarding directors' conduct. We refer you to the Statement of Insolvency Practice 4, paragraph 18 which details the need for strict confidentiality. A full copy of SIP4 can be downloaded here.

The next update to creditors will be the Administrators proposals which will be available to download on this website before the end of March.

The effect of the administrators’ appointment and sale of business on various stakeholders is explained below:

Suppliers to the trading subsidiaries
We have not been appointed administrators of GTC Holdings Limited, Cosalt Offshore Norway A/S or Ballyclare Limited.  All trade suppliers to these companies should continue to speak to their usual contacts at the companies.

Unsecured Creditors
It is anticipated that there will be no distribution to the unsecured creditors of the Company.

Shareholders
Shareholders will not receive any return of the capital they have invested in the Company.  In our role as administrators of the Company, we are not able to provide any personal advice to shareholders and suggest that, if you have any concerns, you seek your own independent advice

Administrators’ proposals
We have decided not to hold a physical meeting of creditors as unfortunately there will not be funds available to pay the unsecured creditors.
A copy of our proposals is available to download here.
A copy of the creditor and shareholding listing from the directors statement of affairs can be downloaded here. Please note this document is password protected for privacy reasons. Creditors or shareholders wishing to view these lists should contact Clare Davison (using the contact section in the top right hand corner of this website) who will arrange for the password to be supplied to them.

Press release
A copy of the press release in relation to the sale of the Offshore business can be downloaded here. Comments from NBGI can be downloaded here.
A copy of the press release in relation to the sale of the Workwear business can be downloaded here.

Documents available to download
The Joint Administrators' progress report for the period 15 February 2013 to 14 August 2013

The Joint Administrators' progress report for the period 15 August 2013 to 27 January 2014
Extension Form - 2.31B

The Joint Administrators' progress report for the period 28 January 2014 to 25 July 2014
Extension Form - 2.31B

Future communication
We will post all future updates and reports relating to the administration of Cosalt plc to this website.  

Further queries
If you have any further queries, please contact Clare Davison on 0113 289 4062.

David Kelly and Andrew Ross been appointed as joint administrators of the Company to manage its affairs, business and property as its agents without personal liability.  Both are licensed to act in the United Kingdom as insolvency practitioners by the Institute of Chartered Accountants in England and Wales.  The joint administrators are Data Controllers of personal data as defined by the Data Protection Act 1998. PricewaterhouseCoopers LLP will act as Data Processor on their instructions. Personal data will be kept secure and processed only for matters relating to the administration.