Harland & Wolff to meet with shareholders as administration risk looms
Troubled shipbuilder Harland & Wolff is planning to meet with shareholders this Thursday following reports that the firm could fall into administration as soon as this week, City PM understands.
Interim chairman Russell Downs intends to inform investors of the group’s financial position at the meeting following weeks of turmoil and uncertainty.
Shareholders have repeatedly had requests for an extraordinary general meeting (EGM) shunned in recent months, and it is understood no vote will be held on Thursday.
They are particularly concerned over the prospect of a pre-pack administration, a move that would allow operations to continue but see their investments wiped out. One source familiar with the company told City PM that as many as 400 employees in the business are shareholders.
News that the firm could potentially fall into administration comes after a string of revelations at the embattled shipbuilder.
Chief finance officer Arun Raman departed on Wednesday, and the company has since confirmed the launch of an investigation into the “misapplication” of some £25m in corporate funds.
Sky News reported on Saturday the FTSE 250 defence contractor Babcock is weighing a possible bid for the firm, with a host of other suitors also lining up.
Harland & Wolff, the Aim-listed company best known for building the Titanic, was plunged into crisis in in July after the Labour government refused to guarantee a £200m UKEF loan seen as critical to its continued operation.
The troubles have seen the departure of a host of top-level executives, including CEO John Wood, chairman Malcolm Groat and two non-executive directors.
It has also placed the future of a £1.6bn Ministry of Defence contract to build warships for the Royal Navy, and more than 1,000 jobs, in doubt.
Harland & Wolff was approached for comment.