Harland & Wolff Group Holdings PLC, the holding company of Harland & Wolff, is moving into an administration process, the company announced today, Monday, September 16.
"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," the company said in a statement.
"Contingency planning for the making of an administration order and appointment of administrators from Teneo is well advanced.
"Once appointed, the administrators will transition the remaining activities undertaken by the Company to other companies in the group."
The core operations undertaken by Harland & Wolff's four yards at Belfast, Appledore, Arnish, and Methil, as well as the Islandmagee energy company, will continue to trade as usual, the company said.
Plans are in place to support employees, predominantly based in London as opposed to other group companies, and the number of immediate redundancies is expected to be between 50 and 60. Some will be transitioned to the sites.
Staff employed by each of the four yards, including Belfast, are not affected, the company said.
This is the second time in five years the company, noted for building the ill-fated Titanic in Belfast, has gone into administration.
Commenting on Monday, Russell Downs, the Interim Executive Director at Harland & Wolff, said: "The Group faces a very challenging time given the overhang of significant historic losses and its failure to secure long term financing.
"Good progress has been made to test the market for investor appetite.
"The Board has reluctantly concluded that the Company's own future as an AIM-listed company will likely come to an end in the near future, but that the core operations undertaken by the four yards and Islandmagee will continue to trade as usual.
"It is important to recognise that this is extremely difficult news for the Company's staff directly affected and will impact many others within group.
"We will work to support our staff through this transition. Unfortunately, extremely difficult decisions have had to be taken to preserve the future of our four yards.
"This will clearly be very unwelcome news for shareholders who have shown significant commitment to the business over the last five years.
"The Board, the senior management and rest of the team are committed to deliver the best outcome for the four yards and communities they serve to ensure their continued operation into the long term under new ownership."
Comments