Harland & Wolff agrees £20m loan and closes business to focus on core operations

Harland & Wolff has announced it has secured an extra £19.5 million loan that the company hopes can support its "ongoing stabilisation"

It comes after the UK Government rejected an application for a £200m loan because of the risk to taxpayers' money.

The total loan from the existing lender now sit's at just over £109m.

The company provided the updated in a statement to investors on Thursday. It said it was streamlining its operations in order to focus on its core business that it carries out in Belfast and at other locations.

It is closing its Isles of Scilly operation as a result.

The company also confirmed the departure of chief executive John Wood who was on a leave of absence following the government's rejection of support.

In a statement Harland & Wolff chairman Malcolm Groat said: "We are grateful to our lenders in continuing their funding commitment to support Harland & Wolff Group's ongoing stabilisation and long-term strategy objectives.

"We also look forward to working with the very experienced team from Rothschild & Co to help us achieve that objective.

"I wish to place our thanks to John for his invaluable contribution to the company's business and wish him the very best in his future endeavours.

"It is regrettable that we have taken the tough decision to terminate the fast ferry, but we need to focus our energies and resources in continuing to grow the core business across our four delivery centres.

"This decision aligns with and brings us back to our fundamental five markets and six services strategy. Our ferry service team will be working closely with passengers and other counterparties to ensure a smooth transition out of this business."

Catch up with the latest UTV Live on ITVX

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know.