Harland & Wolff Puts Yards into Administration Ahead of Asset Sale

 

The deal to save the shipyards of Harland & Wolff is reported to be proceeding with the board of the company saying this week that it expects the sale process to be completed in the coming weeks. Preparing for the sale of the assets, however, the company reported it will move the individual businesses into administration after previously reporting it had the finances to maintain the operations during the transition.

“The directors have reluctantly taken the decision, after a lengthy sales process with assistance from leading advisers, that survival of the companies is no longer viable,” they wrote in a filing on January 14. They noted that the companies, which include the four shipyards, are currently subject to a sale process, reporting, “This sale will see the purchaser acquiring the majority of assets of the core Harland & Wolff businesses.”

The notice of intention to file for administration encompasses the shipyards in Belfast and Appledore as well as the smaller yards being used for fabrication at Arnish and Methil. It also includes the “People & Skills” division. Previously, the publicly traded parent company was placed into administration in December, but the yards had continued to operate. They received temporary financing from Spain’s Navantia group and filings were being made to “enable business operations to continue normally throughout the transition period.”

The latest announcement said, “The trading environment has become increasingly challenging and throughout that time, steps have been taken to minimize spend within the business.”

The status of the acquisition by Navantia was also the subject of discussion in the House of Commons on January 15. The Secretary of State for Northern Ireland, Hilary Benn, responded during the question period saying the commercial agreement was proceeding and that adjustments had been made to the contract to ensure that the fleet solid support ships contract for the Royal Navy Fleet Auxiliary could go ahead. 

Asked about debts to suppliers, Benn, said it would be up to Navantia “to decide which of the invoices it wishes to pay, but it will want to secure a relationship with suppliers contributing to the fleet solid support ship program.”

The acquisition requires regulatory approval before it can proceed. The companies said in December that they were targeting January for the closing.