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Cosalt secures short-term loan
Cosalt has secured a short-term £5m injection of working capital from the investment vehicle of non-executive chairman and takeover suitor David Ross.
The beleaguered safety and workwear business said Oval has made a £5m unsecured facility available for drawdown with immediate effect.
The money is repayable by 22 December, the date by which Ross' offer becomes unconditional. Repayment is also required if the Grimsby business refinances, is taken over or put into administration.
However, the company added that if Ross' £400,000 bid is not declared unconditional by 22 December it will seek an extension.
Last month (November), the Carphone Warehouse co-founder's offer was recommended for acceptance by Cosalt's board.
Ross has provided significant levels of funding to the company, including £10.4m of equity funding since 2006, as well as £2.6m of loans and £4.6m of bank guarantees currently outstanding.
Ross, who already holds a 15 per cent stake in Cosalt, has indicated that should his takeover succeed, he intends to provide additional capital investment and take the business private.
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