Harland & Wolff has denied ever asking the UK Government for a 100% guarantee on £200 million of borrowing the Belfast shipyard owner is seeking from commercial lenders.
The company claimed it only ever applied for a standard 80% guarantee under the UK Export Finance Export Development Guarantee (EDG) scheme.
It followed reporting by the Finance Times suggesting the new Labour government will reject the bid for a 100% guarantee.
In a statement to the markets on Wednesday morning, the management of Harland & Wolff Group Holdings plc branded the reporting by the FT “and certain other media outlets” as “speculative and misleading”.
It said: “The company has not asked for a 100% guaranteed product on any occasion.”
It followed a statement released to the media on Tuesday evening, confirming the shipyard owner had proposed a “reworked deal” around an 80% guarantee.
However, the claim by the shipyard owner appears at odds by assertions made by the UK’s former Secretary of State for Business and Trade Greg Hands in May 2024.
In a written response to questions from former Labour MP Kevan Jones, around whether anyone in his department had proposed a 100% export credit guarantee in advance of negotiations with a company, Mr Hands said: “The Department of Business and Trade has not unilaterally proposed a 100% guarantee to any company.”
The EDG scheme typically offers lenders a government-backed guarantee on up to 80% on the risk of a loan.
Harland & Wolff is under financial pressure after reporting losses of £113m across 2022 and 2023.
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The group’s senior management wants to refinance a high interest $115m (£88m) debt facility it holds with New York-based Riverstone Credit Partners.
Earlier this month, Harland & Wolff said its net debt stood at £92.4m at the end of last year.
It wants to increase its borrowings in order to progress a number of potentially lucrative marine contracts.
The biggest deal involves the subcontract with Spain’s Navantia to build fleet solid support (FSS) vessels for the UK Ministry of Defence (MoD), a deal the shipyard owner claims could be worth around £750m.
But production for the seven-year programme is not due to start until 2025.
A spokesperson for Harland & Wolff said: “Since being advised by the government over 15 months ago that they would be providing a 100% UKEF loan guarantee, which was approved in principle last December by the then Chancellor, we became aware of government concerns regarding honouring that 100% level only in March 2024.
“Consequently, we have proposed a reworked deal at the standard 80% guaranteed level, that has been awarded to hundreds of other companies, and look forward to hearing the Government’s response.
“We have shared independent legal opinions explaining why previously identified barriers, including subsidy control, should not prevent the guarantee from being approved.”
The company said it has not been informed of any decision by the new administration.
