Cosalt PLC Disposal (1986T)
11 December 2012 - 6:00PM
UK Regulatory
TIDMCSLT
RNS Number : 1986T
Cosalt PLC
11 December 2012
Cosalt Plc
("Cosalt" or the "Company")
Disposal of investment property
Update on the financial position
Cosalt announces that, yesterday, it exchanged contracts for the
sale of the freehold title to land off Gibson Lane, Melton, North
Ferriby, Hull (the "Property"), following an auction which took
place yesterday.
The Property was sold to Reynolds 2000 Limited for GBP350,000
payable in cash on completion. After taking account of auction
costs, the net proceeds receivable by the Cosalt group will be
GBP321,725. Completion is expected to occur on 21 December
2012.
The Property's book value is GBP1,000,000. After taking account
of certain non-recoverable direct costs, the Property produced a
net loss to the Group of approximately GBP10,000 for the year to 30
September 2012.
The Property is an investment property only, and none of the
Cosalt businesses use it for their operations. Other than the
receipt of the proceeds and the small reduction in on-going losses,
there will be no other effects on the Company as a result of this
sale.
Proceeds of the sale of the Property
The Company has certain bank and other loans falling due on 31
December 2012. The purpose of the sale of the Property is to
generate cash which will be used to reduce the Company's
indebtedness. The proceeds of the sale of the Property will be
applied in accordance with a deed of priority entered into between,
among others, Cosalt, the Company's lenders, the Cosalt Pension
Scheme trustees and David Ross. The sale proceeds will partially
discharge the Company's obligation to repay the balance of a GBP1.5
million unsecured loan previously advanced by David Ross against
the sale of the Property and certain other properties owned by the
Company and which was announced by Cosalt on 3 May 2011.
Enquiries:
Cosalt Plc Tel: +44 (0) 1472 725 560
Trevor Sands, Chief Executive Officer
Cardew Group Tel: +44 (0) 207 930 0777
Tim Robertson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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