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Titanic maker Harland & Wolff to run out of cash within weeks

September 13, 2024
in Business
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Titanic maker Harland & Wolff to run out of cash within weeks
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However, the firm is heavily loss-making and its shares have been suspended since the beginning of July, after it failed to publish audited accounts.

Later that month, ministers rejected the firm’s application for a £200m loan guarantee.

Business Secretary Jonathan Reynolds told parliament at the time: “Government funding would not necessarily secure our objectives and there is a very substantial risk that taxpayer money would be lost.”

Ministers were working with the company, unions, and devolved governments to “support a positive outcome for all affected sites across the UK”, he added.

The firm’s existing creditor, US-based lender Riverstone, lent a further £19.5m in August, but it is understood Harland & Wolff is still in talks to secure further funding beyond the end of September.

There has been an exodus of senior directors in recent weeks with the chairman, chief executive, chief financial officer, and two non-executive directors all walking away.

Meanwhile, some existing investors have voiced their concerns about the company going into administration.

Last month a group of shareholders said they feared the business was being lined up for a pre-pack administration – enabling the company to sell itself or its assets before administrators are appointed.

The 163-year-old company has been rescued from administration once before.

In 2019, it was saved by a three-year contract with the Spanish shipbuilder Navantia to build three Royal Navy support ships.

Credit: Source link

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