Harland and Wolff (H&W) - the parent company of the Arnish yard in Lewis - has announced
it is preparing to enter administration.
The firm says it is insolvent and the process to making an administration order. Teneo has been appointed as administrators to conduct the process.
However, the Arnish yard which is currently busy with work is operated under a subsidiary company with hopes of selling it as a going concern.
Administration is restricted to parent company, Harland & Wolff Group Holdings PLC and not its four shipyard and manufacturing yards.
The 145 people employed at Arnish are not affected by today’s announcement and the Lewis yard continues to trade while it is offered for sale.
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.
A company statement said: “For the avoidance of doubt, the administration process referred to is confined solely to the Company (Harland & Wolff Group Holdings plc) and in no way affects the core operational companies within the group, all of which are expected to continue to trade in the ordinary course of their respective businesses.”
Core operations undertaken by the four yards which includes Arnish, and the Islandmagee gas storage project in Northern Ireland, will “continue to trade as usual” for now.
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H&W highlights 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 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 to enter administration after declaring itself insolvent
16 September 2024
