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The crisis engulfing the shipyard that built the Titanic deepened as its boss resigned and it confirmed it will not receive a £200m lifeline from the Government.
As the future of Harland & Wolff hangs in the balance, it said yesterday that chief executive John Wood was ‘taking a leave of absence’ with immediate effect.
He will be replaced on an interim basis by veteran accountant Russell Downs, who worked on the administration of Lehman Brothers.
It also revealed it will not be handed a loan guarantee by ministers, which was seen as key to keeping the 162-year-old business afloat.
Harland & Wolff said it is in talks with its existing Wall Street lender Riverstone Credit Management and hopes to secure new finance within days.
Crisis: As the future of Harland & Wolff hangs in the balance, it said that chief executive John Wood was ‘taking a leave of absence’ with immediate effect
It is also looking at other ‘strategic options’ which could mean putting itself up for sale.
Downs said: ‘The great weight of responsibility for all stakeholders involved in the business to secure a long-term future is crystal clear to me and I am enormously honoured to be given the responsibility to find a solution.
‘I will be working tirelessly in consultation with employees, management, customers, suppliers, unions, government agencies and other stakeholder groups in the coming weeks.’
Earlier this week, the Belfast-based company insisted that no decision had been made about a government guarantee after reports suggested Prime Minister Sir Keir Starmer was planning to block the move – deeming it an inappropriate use of public funds.
Under plans, the group was seeking to borrow cash from a consortium of UK banks but needs the Government to act as guarantor. That means if the loans were to go bad, the state would step in to repay the lenders. The group was hoping to secure a guarantee on 80 per cent of the £200m loan.
Business Secretary Jonathan Reynolds is expected to make a statement about Harland & Wolff on Monday.
The update adds to the ongoing saga at Harland & Wolff, which was forced to suspend its London-listed shares last month when it failed to file audited accounts.
And Labour’s decision will raise alarm bells on the future of the company’s ability to fulfil a £1.6billion contract to build Royal Navy ships in the UK, which could be built in Spain if the business shuts down.
It would be the first time in British naval history that a warship was built by a foreign yard.
Harland & Wolff was bought out of administration in 2019 by investment firm InfraStrata.
But losses hit £70m for 2022, which were its last audited annual accounts.
Other crises causing a headache for Starmer include Tata Steel’s plans to axe 2,800 jobs, Royal Mail heading for foreign ownership and Dyson consulting on cutting 1,000 roles.
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