Shipyard to enter administration | EUROtoday

Harland and Wolff has confirmed the enterprise is to be positioned into administration for the second time in 5 years.

Insolvency practitioners Teneo are being lined as much as act as directors and a few “non-core” workers are being made redundant.

However, the corporate’s board stated there was a “credible pathway” for its 4 shipyards to proceed buying and selling beneath new possession.

Its predominant yard is in Belfast, with different operations at Appledore in England and Methil and Arnish in Scotland.

The firm stated the administration course of can be confined to the holding firm, Harland & Wolff Group Holdings plc, and the operational firms which run the yards are anticipated to proceed buying and selling.

However, shareholders will see the worth of their investments within the enterprise fully worn out.

In an announcement, the agency stated its non-core operations are being wound down.

That course of had already began with the closure of its Scilly Isles ferry service earlier than crusing had even begun.

Other non-core operations embody a small enterprise within the US and a marine companies enterprise which is to offered within the hope of preserving 14 jobs.

A small variety of non-core workers and others in assist roles had been instructed Monday they had been dropping their jobs.

The firm warned that “a further reduction in headcount in our core activities may be necessary” relying on the progress of the gross sales course of.

On Saturday, the agency’s govt chairman, Russell Downs, stated the yards “together or separately have a credible future”.

“We have strong leadership in all of our yards,” he added.

“We have a strong business case around the work they are currently doing and the work they expect to do in the future.

“They have a funding want within the close to time period however into the longer term they are going to be producing money.”

Rothschild bank is running the sales process and the company said a number of parties had contacted it to express an interest in acquiring some or all of the yards with a first-round bid deadline due shortly.

It is understood that Spain’s state-owned shipbuilder Navantia is interested in the Belfast operation.

Navantia is the major partner in the Fleet Solid Support (FSS) programme to build three Royal Navy logistics vessels with Harland and Wolff as subcontractor.

Sky News has reported that Babcock International, the UK defence contractor, is also a potential bidder for the Belfast business.

Mr Downs instructed the BBC he hoped to have the ability to conclude a deal or offers by the tip of October.