‘Titanic’ builder Harland & Wolff files for bankruptcy

The Titanic shipbuilder issued a statement: “A full review of all group holdings commenced in July and has concluded that H&W Group Holdings PLC is insolvent on a balance sheet basis as per its last audited accounts and most recent management accounts.”

Between 50 and 60 immediate redundancies are expected, but so far staff at the company’s four shipyards (Belfast, Methil, Arnish and Appledore) are safe.

It is the second time in five years that the company has gone into administration, and things were looking up after it was rescued in 2019 by InfraStrata and John Wood stepped in as CEO.

However the new Labour government in July refused to uphold a £200 million loan guarantee agreed by the previous administration, which was owed to American creditor Riverstone Credit Management.

“This decision was based on a comprehensive assessment of the company’s financial profile and the criteria set out in our risk policies,” said new Secretary of State for Business and Trade, Jonathan Reynolds. “We have also decided not to provide any form of emergency liquidity funding. While such a decision is not easy, it is my assessment, following extensive engagement by my officials with market players, that HM Government funding would not necessarily secure our objectives and there is a very substantial risk that taxpayer money would be lost.

“The government believes, in this instance, that the market is best placed to resolve the commercial matters faced by Harland and Wolff.”

Immediately after the announcement Wood stepped down and Russell Downs, from Riverstone, was parachuted in as interim CEO and ‘restructuring expert’.

Two months later, the firm has filed for bankruptcy. Maritime Journal has not yet received a comment from Harland & Wolff.