Harland & Wolff: Titanic shipbuilder calls in administrators

Historic Titanic shipbuilder Harland and Wolff has called in administrators, saying the company “is insolvent”.

Jobs are set to be at risk with the 162-year-old company saying “contingency planning was underway to place the Company into administration”.

This comes after the firm ran in to major debts and was trying to make arrangements, including through government funding, to avoid the drop.

The Belfast-based firm, famous for building the Titanic, revealed on Monday it would enter administration this week, following months of turmoil since the new Labour government rejected its application for a critical £200m loan guarantee in July.

In an announcement to markets on Friday afternoon, it “has appointed Gavin Park and Matt Cowlishaw of Teneo Financial Advisory Limited”, as administrators.

Harland & Wolff Group Holdings, an Aim-quoted parent firm of the well-known ship-builder, is the only company which has had administrators appointed.

Its subsidiaries in Northern Ireland, Scotland and England are not subject to the insolvency process, and will continue trading.

It said 66 employees remain at the firm but “administrators will unfortunately be required to reduce the headcount upon appointment.”

A number of employees will be retained to provide certain required services to the operational companies under a transitional services agreement with the Administrators.”

This comes after Rothschild & Co was brought in in July “to assess strategic options for the Company and its subsidiaries. This process remains ongoing and further updates will be made as appropriate.”

The update said that “the Company reconfirms its position that the strategic review will not result in any returns to shareholders of Harland & Wolff Group Holdings plc.”

With the appointment of administrators, the firm also announced the resignation of Cavendish Capital Markets Limited as nominated adviser and joint broker.”

Earlier in September, shareholders in Harland & Wolff accused the shipyard and both major political parties of misleading investors over its financial future.

More to follow