Vitol and Grindrod, joint shareholders of Cockett, have made the strategic decision to conduct an orderly wind-down of Cockett, Vitol said in its release.
“This difficult wind-down decision was reached after long consideration and in light of the non-core nature of Cockett’s business to both shareholders,” as it is stated in the announcement.
Cockett is in a sound financial position. It will continue to perform all of its existing contractual obligations, in a timely manner, to both suppliers and customers, but as of May 13 it will not enter into any new business, the shareholders state.
“The shareholders are keen to ensure that the wind-down proceeds on a solvent basis. Cockett anticipates that all relevant suppliers will be paid in full within the next 60 days, in each case in accordance with the terms of their supply contracts. It also anticipates payment of relevant receivables due from customers within a similar timeframe,” reads the statement.
The wind-down process will be led by Cockett’s current management team, Cem Saral and Arnaud Payot, Cockett’s long standing CEO and CFO.
“They will be supported by Vitol on behalf of the shareholders who, as a leading global energy supplier, holds existing relationships with many of Cockett’s suppliers and customers. A core team will remain in place to ensure the orderly settlement of payables and receivables,” Vitol concluded in its statement.
