Harland and Wolff (H&W) has officially entered administration today (Friday).
Gavin Park and Matt Cowlishaw of Teneo Financial Advisory have been appointed as joint administrators.
The Arnish yard in Lewis is not affected by today’s announcement as it operates under a subsidiary company with hopes of selling it as a going concern.
Administration is restricted to parent company, Harland & Wolff Group Holdings PLC
which specialises in shipbuilding, ship repair and marine engineering. It is a non-trading
holding company and is the only entity to which administrators have been appointed.
In its final statement, the parent firm said Arnish operates under the control of its own directors. The yard which employs around 145 people continues to trade while it is offered for sale.
Rothschild and Co were engaged in July to assess strategic options for the company and its subsidiaries.
Doubts intensified over H&W’s future after the incoming Labour government rejected a rescue deal soon after coming into power.
A £200 million government guarantee lifeline was refused and a request for an £20 million emergency loan to keep afloat was also ruled out.
Only a last ditch injection of cash from the company’s American funders, Riverstone Credit Management, provided breathing space to this point.
► Harland & Wolff figures ‘didn’t stack up’ says Scottish Office minister on Arnish visit
► Arnish operator, Harland and Wolff, to focus on core business activities amid restructuring
H&W previously highlighted a “number of parties have expressed an interest” in acquiring some or all of the group's subsidiaries.
The firm said each of the group's shipyards [including Arnish] are significant employers within the communities they serve and we are working towards securing them a brighter future under a new strong and capable sponsor.”
The board believes there is a “credible pathway” to continuing core operations built
around a four-yard operation delivering the contract for Royal Navy supplies support
ships, known as the FSS contract, ongoing projects, and other uncontracted revenue
across its sites.
Harland and Wolff parent company formally moves into administration
27 September 2024
