Historic shipbuilder Harland & Wolff has confirmed it will initiate the UK insolvency process of administration.
The London-listed group, which built the Titanic at its Belfast shipyard in the early 20th century, confirmed on Monday that it intends to appoint administrators.
“The absence of an appropriate funding structure following the rejection of the company’s request for a £200m UKEF [UK export finance] facility has left the loss-making company in a difficult financial position,” H&W said in a trading update.
The company secured a $25m emergency cash injection in July from its lender, Riverstone Credit Partners, which is being used as working capital.
H&W said it is currently in discussions with several parties to secure interim funding to support the business while adviser Rothschild & Co assesses strategic options for the group.
“A number of parties have expressed an interest in acquiring some or all of the group’s subsidiaries and a first-round bid deadline is due shortly,” the group said on Monday.
The group’s core operations are focused on its four shipyards, plus interests in the Islandmagee Gas Storage project in Northern Ireland. All will continue to trade as usual during the administration process.
H&W said its non-core activities — including Scilly Ferries and its marine services arm — are being wound down and redundancies were announced to staff on Monday.
Further layoffs may be made to H&W’s core business in the future, the group said.
In Belfast, H&W is cooperating with Spanish shipbuilder Navantia to build three fleet solid support vessels for the Royal Fleet Auxiliary, which supports the UK’s Royal Navy.
“The board is in regular discussion with Navantia and UK MOD [Ministry of Defence] on its plans to ensure that key milestones of cutting steel, production readiness and delivery of the vessels remain on track,” the group said.
Construction is set to begin next year for completion by 2032.
Most of the ship’s blocks and modules will be built at H&W’s Belfast and Appledore facilities, as well as at Navantia’s Cadiz shipyard in Spain.
All three will undergo final assembly in Belfast.
Other construction and conversion projects are also underway at H&W’s yards in Appledore in southern England and Arnish and Methil in Scotland.
