Harland & Wolff, the historic UK shipbuilder known for constructing the Titanic, declared insolvency on Monday.
What Happened: The 163-year-old company announced it would likely enter administration in the coming days after failing to secure necessary funding. Administration allows UK companies to restructure instead of immediate liquidation.
Harland & Wolff’s request for a £200 million ($264 million) facility from UK Export Finance was denied, leaving the company in a precarious financial state. Staff have been informed of job cuts in non-core operations and the holding company.
The company’s core operations, including its Belfast shipyard, will continue unaffected. The Belfast site, famous for building the Titanic, is currently involved in constructing three warships for the UK government.
Why It Matters: Interim executive director Russell Downs stated, “The group faces a very challenging time, given the overhang of significant historic losses and its failure to secure long-term financing.”
This is not the first time Harland & Wolff has faced financial difficulties. In 2019, the British government appointed an administrator to restructure the firm, which was later acquired by UK energy company InfraStrata.
Despite these challenges, Harland & Wolff remains focused on ship repairs and greener energy projects, including the Islandmagee Gas Storage Project in Northern Ireland.
A government spokesperson reiterated that administration proceedings would not impact the company’s ability to fulfill its contracts, including those for the UK’s Ministry of Defence, according to BBC.
Read Next:
Photo: LUM3N from Pixabay
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
