Harland & Wolff has confirmed that it has called in administrators after concluding that its non-trading holdings company is insolvent on a balance sheet basis.
It’s the second time the business has collapsed in five years.
But the company’s key subsidiaries, including its prized shipyard in Belfast along with smaller facilities in Arnish, Methil and Appledore, are not subject to the insolvency process and will continue to trade under the control of their directors.
Unite the union has already said that more than 20 companies have expressed an interest in buying into the shipyard business of the crisis-hit Harland & Wolff, including potentially Spain’s state-owned shipbuilder Navantia.
“As of September 27, the company has appointed Gavin Park and Matt Cowlishaw of Teneo Financial Advisory Ltd as joint administrators,” the company said in a statement issues after 3pm on Friday.
“The non-trading holding company is the only entity to which administrators have been appointed.”
The AIM-listed Harland & Wolff Group Holdings Plc shipbuilding, ship repair and marine engineering firm has 66 employees.
But the administrators will be required to reduce that headcount, and only a handful of staff are likely to be retained to provide certain required services to the operational companies under a transitional services agreement with the administrators.
Rothschild & Co had been engaged at the end of July to assess strategic options for the company and its subsidiaries, a process which remains ongoing.
Following the appointment of administrators, Cavendish Capital Markets Ltd informed the company of its resignation as nominated adviser and joint broker, while separately the resignation of Panmure Liberum as joint broker was confirmed with immediate effect.
