Trump has begun another trade war. Here's a timeline of how we got here
Canada's leader laments lost friendship with US in town that sheltered stranded Americans after 9/11
Chinese EV giant BYD's fourth-quarter profit leaps 73%
You're an American in another land? Prepare to talk about the why and how of Trump 2.0
Chalk talk: Star power, top teams and No. 5 seeds headline the women's March Madness Sweet 16
Purdue returns to Sweet 16 with 76-62 win over McNeese in March Madness
London (CNN) — Harland & Wolff, the 163-year-old firm that built the Titanic, has declared itself insolvent after failing to secure funding to continue trading.
The loss-making UK shipbuilder said Monday that it would likely begin administration proceedings in the coming days. Administration provides a way for companies in the United Kingdom to restructure when they cannot pay their debts, as opposed to being wound up, or liquidated, immediately.
In a statement, Harland & Wolff said its request for a £200 million ($264 million) “facility” from UK Export Finance, a government department, had been rejected, leaving it “in a difficult financial position.”
The firm said its staff had already been informed of job cuts in “non-core operations” and in the holding company.
The group’s “core operations” — including its Belfast shipyard that built the Titanic and is now helping construct three warships for the UK government — will not be affected by the administration proceedings and will continue to trade as usual, it added.
The company said it was exploring the sale of these operations while continuing to seek new financing.
“The group faces a very challenging time, given the overhang of significant historic losses and its failure to secure long-term financing,” said interim executive director Russell Downs. “Unfortunately, extremely difficult decisions have had to be taken to preserve the future of our four yards,” he added, referring to the company’s shipyards.
This is not the first time that Harland & Wolff has prepared for bankruptcy. In 2019, the British government named an administrator to restructure the firm, but months later it was thrown a lifeline when UK energy company InfraStrata agreed to buy it.
Last year, Harland & Wolff, which completed the Titanic in 1912, delivered its first finished vessel from its historic Belfast site in two decades.
The firm has largely focused on repairing ships and work on greener energy, which includes, following its sale to InfraStrata, the Islandmagee Gas Storage Project in Northern Ireland.
Activity on the Islandmagee project will also continue as normal, Harland & Wolff said.
In a statement Monday, Matt Roberts, a national officer at UK labor union GMB, said the UK government must act “to ensure no private company is allowed to cherry-pick” which of Harland & Wolff’s yards or contracts to retain.
“Leaving these vital yards — and the crucial (warships) contract with all its promises for UK shipbuilding — to the mercy of the market is not good enough,” he added.
A spokesperson for the government highlighted the company’s assurances that any administration proceedings would not affect its shipyards, including delivering on contracts for the UK’s Ministry of Defence.
“We are clear that, following a thorough review of the company’s financial situation, at present the market is best-placed to address these challenges, and providing government funding would have meant a significant risk of losing taxpayer money,” the spokesperson added in a statement.
“We are continuing to work extensively with all parties to find an outcome for Harland & Wolff that delivers shipbuilding and manufacturing in Belfast, Scotland and across the rest of the UK and protects jobs.”
The-CNN-Wire
™ & © 2024 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
