David Kelly and Andrew Ross were appointed joint administrators of Cosalt Plc on 15 February 2013 and ceased to act on 12 February 2015.
The Company was 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 announced 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.
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 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 There was a small distribution paid to the unsecured creditors of the Compan, via the prescribed part.
Shareholders will not receive any return of the capital they have invested in 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
A physical meeting of creditors was not held as unfortunately there was not funds available to pay the unsecured creditors other than via the prescribed part.
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.