The future of Harland & Wolff remains uncertain after it was confirmed that the company won’t be receiving a £200 million government loan guarantee. On the same day, Chief Executive John Wood left his post with immediate effect.
The company now has to pursue other avenues for large-scale funding which is considered essential for its future survival. Russell Downs, a London-based restructuring specialist, has taken over as Interim Chief Executive.
Harland & Wolff had been seeking to borrow from a number of UK banks, but needed the government to act as guarantor. Both the previous Conservative government and the new Labour one have backed away from the prospect.
The new Business Secretary, Jonathan Reynolds, is understood to be making a statement to the House of Commons at the start of next week. During a recent visit, Secretary of State Hilary Benn said that the government was committed to shipbuilding in Northern Ireland.
Harland & Wolff entered administration back in 2019 before being bought out of administration. It went on to become part of a UK consortium which won the contract to build three Royal Navy supply ships.