£200m loan guarantee that Harland and Wolff was seeking from government has been rejected
A £200million pound loan guarantee that Harland and Wolff was seeking from the government has been rejected.
The company says it has been notified by the Department for Business and Trade, that their application will not be proceeding.
The ship manufacturer is looking to scale up its operations ahead of a £1.6billion Royal Navy contract.
The company says it will now seek alternative finance arrangements in the coming days and has also announced Chief Executive John Wood has taken a leave of absence with immediate effect.
In a statement to the stock exchange, Harland and Wolff said it has “expedited discussions with Riverstone Credit Management LLC in order to secure alternative new debt facilities to support the near-term working capital needs of the business following its recent significant revenue growth.
“These alternative financing arrangements are expected to close within the next few days.
“The Company remains in active dialogue with key stakeholders, including the UK Government, around existing and future contracts and the long-term capitalization plan for the business.”
A number of changes are also being made to the management team with the Chief Executive stepping aside.
It added: “John Wood will be taking a leave of absence from his role as CEO with immediate effect, subject to completion of requisite client on-boarding procedures and due diligence, Russell Downs is proposed to join the board as Interim Executive Chairman.”
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