Cosalt marine sale on hold

Grimsby-based Cosalt said the deal would be unlikely to complete by July 22 because of the intervention by the Office of Fair Trading.

Survitec is expected to pay between £25m to £35m for the marine safety business, which services survival equipment such as lifeboats and survival suits, after agreeing a deal in May.

Today Cosalt said its senior lenders have agreed to extend the waiver relating to the repayment of money due under the current banking facilities.

“The group’s senior lenders have agreed to extend the waiver relating to the repayment of amounts due under the existing facilities and the right to test financial covenants from 22 July until 19 August, subject to completion of the disposal on or before this date.”

Earlier this year Cosalt revealed it may be forced to take impairment and exceptional charges totalling more than £17m following problems in its offshore division.

The group uncovered problems in its offshore division’s accounts in October, stemming from “a series of doubtful transactions”.