The Times on Friday reported that Harland & Wolff’s chief executive has yet to meet a deadline set by administrators to submit a statement of affairs for the struggling shipbuilder, which is now unlikely to be able to repay its creditors.
Russell Downs, the group’s executive chairman, has requested that Teneo administrators extend the deadline to November 5.
According to a report from the administrators, Downs “was informed on October 2, 2024, that he was required to prepare and deliver a statement of the company’s affairs to us by October 15, 2024.”
Harland & Wolff entered administration in September following a review that determined the struggling shipbuilder had no long-term funding from the group or its lender to cover ongoing expenses.
Russell Downs took on the role of interim chairman in July after former chief executive John Wood went on a “leave of absence.” A restructuring expert, Downs previously served as an administrator for the collapse of Lehman Brothers and was a special manager during Carillion’s liquidation.
Advisors at Teneo have been overseeing Harland & Wolff’s administration process, gathering claims from creditors. A report released on Wednesday outlined the circumstances leading to the shipbuilder’s administration and detailed its outstanding debts.
According to the administrators, Harland & Wolff’s finance provider, Riverstone Credit Management, is unlikely to recover the full £156.7 million it had lent. Prior to the administration, the American asset manager had been supporting the shipbuilder through loans at a 14% interest rate.
Teneo has indicated that proceeds from Harland & Wolff’s asset disposal are unlikely to fully cover its debts to Riverstone.
Harland & Wolff initially borrowed $35 million from Riverstone in 2021. In August of this year, as the company faced financial struggles, Riverstone provided an additional $25 million in emergency funding, supplementing a prior $115 million credit facility.
