‘Titanic’ Shipbuilder Harland & Wolff Files For Bankruptcy

The British shipbuilder Harland & Wolff, famed for constructing the iconic RMS Titanic, has declared bankruptcy after failing to secure sufficient funds.

The firm, which also builds warships for the UK government, revealed on September 16, 2024, that it will begin administration proceedings in the coming days.

The company applied for a £200 million ($264 million) loan from UK Export Finance but was denied, leaving it unable to pay its debts.

Despite the financial crisis, Harland & Wolff has confirmed that its core operations, including the Belfast shipyard, would continue to operate.

The Belfast shipyard is currently constructing three Royal Navy ships, and the company is exploring options to sell these operations while still seeking funding.

Administration, a process similar to bankruptcy in the United States, will allow the company to restructure rather than be liquidated immediately. The shipbuilder stated that layoffs have already begun in “non-core operations” and within the parent company.

Russell Downs, Harland & Wolff’s executive director, stated that the company had suffered “significant historic losses” and cited the inability to acquire long-term funding as a major setback.

Downs added that, despite the administration proceedings, efforts are underway to sell the company, either whole or in part, while maintaining the company’s four shipyards.

It is not the first time Harland & Wolff has faced financial challenges. In 2019, the British government appointed an administrator to help restructure the firm.

The company was eventually acquired by UK energy firm InfraStrata, who directed it toward projects such as the Islandmagee Gas Storage Project in Northern Ireland and sustainable energy solutions. Despite recent challenges, work on the Islandmagee project and ship repair services will continue.

The latest financial crisis questions Harland & Wolff’s involvement in the Royal Navy’s vessel construction. The project is being developed in collaboration with Spain’s state-owned shipbuilder Navantia and is still under discussion.

According to reports, both Navantia and the UK defense company Babcock International expressed interest in acquiring the Belfast Shipyard.

A British Department of Business and Trade representative stated that while the government is “working extensively” to protect jobs and find a solution for Harland & Wolff, funding will not be provided due to concerns over the risk to taxpayers’ money.

Harland & Wolff, which employed around 1,300 people before the administration filing, has struggled financially for several years. The company reported major losses of over £25 million ($33 million) in 2023 and discontinued trading in its shares on the London Stock Exchange earlier this year after failing to issue audited accounts.

Matt Roberts, a GMB officer in the UK labour union, criticized the government’s decision and warned against allowing companies to “cherry-pick” the firm’s assets. He asked for the government to make an effort to protect UK shipbuilding.

Reference: NYTimes, CNN

‘Titanic’ Shipbuilder Harland & Wolff Files For Bankruptcy appeared first on Marine Insight – The Maritime Industry Guide

Source: Maritime Shipping News