The imminent threat to 250 Aberdeen jobs at troubled engineering firm Cosalt has been lifted after the company’s potential new owner said operations would continue for at least another three weeks.
Cosalt said last week it only had enough money to last until tomorrow.
However, non-executive chairman David Ross said yesterday he was in discussions with the firm’s lenders to release funding and keep the business afloat.
Mr Ross has made a £340,000-plus offer for Cosalt and shareholders are expected to receive the details of his bid today, including a pledge that he will invest £5million in the business.
They have three weeks to consider his offer and either support or oppose it, but Mr Ross said some of the £5million would be issued early to keep the Grimsby-based company going and safeguard the jobs of its employees.
Cosalt employs around 360 people, including 250 at its Aberdeen-based offshore division.
Mr Ross, the co-founder of Carphone Warehouse, was in Aberdeen yesterday to meet Cosalt’s customers and employees, and said he appreciated that they were apprehensive but wanted to allay their concerns about the future of the firm.
He added: “We are looking to build the business, increase our range of services and add to our client numbers.”
Mr Ross said work at Cosalt’s Bridge of Don site would continue as normal while shareholders considered his offer.
The chief executive of Cosalt’s offshore division, Rod Buchan, said he was confident the company would have a successful future if Mr Ross’s takeover went ahead. Mr Buchan added: “The offshore division is a great business. Trading has increased in 2011 and we have a strong customer base and excellent team.
“We need the right financial structure in place, however, which is what a lot of the discussion has been about in recent days.
“Once we have that, I think we have the other ingredients we need to get this business back on track.”
If Mr Ross’s offer is accepted, Cosalt will be taken off the Stock Exchange and become a private company again. Earlier this year, it sold its marine division for £31million to pay off a debt pile which stood at £7million at the end of September but has since ballooned to £14million. Cosalt also has a pension deficit of £9million.
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