Harland & Wolff, the shipbuilder renowned for constructing the Titanic, is set to enter administration after admitting insolvency, potentially putting up to 1,000 jobs at risk.
The Belfast-based company has confirmed that Teneo administrators have been appointed to oversee the administration process, which is expected to begin this week. The company announced that this move will result in redundancies at its head office and the delisting of its shares from the London Stock Exchange. The shares have been suspended since July.
The administration will impact only Harland & Wolff Holdings Plc, the holding company, while its four shipyards—Belfast, Appledore, Arnish, and Methil—will continue operating.
According to the company, the board has determined that it is insolvent based on its most recent audited and management accounts. Consequently, preparations are underway for the administration order and the appointment of Teneo as administrators, with the process likely to start this week.
If administrators are formally appointed, the company’s shares will not resume trading on the Alternative Investment Market, and shareholders are expected to see no return on their investments.
The board has also indicated that appropriate plans are in place for affected employees, though redundancies are an unfortunate but anticipated outcome.
The crisis has been exacerbated by the UK Government’s refusal to guarantee a £200 million refinancing deal. This deal, initially promised by Conservative ministers, was blocked by the new Business Secretary, Jonathan Reynolds, in July due to concerns about potential taxpayer losses.
This decision led to the removal of former CEO John Wood and the appointment of interim leadership, including restructuring expert Russell Downs, who is now the executive chairman.
Despite these challenges, Harland & Wolff is still working to maintain its role in the Royal Navy’s £1.6 billion Fleet Solid Support (FSS) program, which aims to build three supply ships.
Under the scheme, Harland & Wolff has been subcontracted by the Spanish state shipbuilder Navantia to partially fabricate and then assemble three ships at its Belfast yard.
According to Monday’s statement, the company is in “regular discussions” with both Navantia and the Ministry of Defence. Current talks with Navantia are centered on developing a plan to resume the preparatory work for the ships.
Over the weekend, Mr. Downs also mentioned that Navantia is considering a potential takeover of Harland & Wolff’s Belfast operations.
Harland & Wolff stated, “The group has been actively revising its plans for constructing the three FSS vessels over the past eight weeks. By July, preparatory work in Belfast was nearly halted, and production slots for essential equipment were suspended due to delays in payments.”
The board is working closely with Navantia and the Ministry of Defence to ensure that critical milestones such as cutting steel, achieving production readiness, and delivering the vessels stay on schedule. The delivery plan for the FSS contract has been rigorously tested and reviewed.
Additionally, the company has launched an investigation into the “alleged misapplication of remittances exceeding £25 million, along with other minor issues” from the time of former CEO Mr. Wood. He has dismissed these allegations as “ridiculous.”
