Harland & Wolff: Business Secretary to make statement on Monday

The UK business secretary is expected to make a parliamentary statement about Harland and Wolff on Monday.

The shipbuilder has applied for a £200m government loan guarantee which is seen as vital for its financial stability.

There is a growing expectation that the government will reject the application from the heavily loss making firm.

It is understood that officials have had intensive contact with Harland and Wolff and its lenders in recent days.

There is an expectation in government that a solution will be found which removes the immediate risk of the business falling into administration.

The Financial Times has reported that the company is seeking fresh funding from its main lender, Riverstone.

The BBC has contacted Harland and Wolff for comment.

On Wednesday, the Northern Ireland secretary, Hilary Benn, said the government is committed to the maintenance of shipbuilding in Northern Ireland.

The company wants to take on £200m of new borrowing to refinance an £90m high interest loan from Riverstone and invest in its operations as it scales up ahead of a major Royal Navy contract.

It is seeking to borrow from a consortium of UK banks, but needs the government to act as guarantor – meaning if the loans were to go bad the state would step in to repay the lenders.

Harland and Wolff was bought out of administration in 2019 and in 2022 was part of the consortium which won a major contract to build three Royal Navy support ships.

The company has had to invest significantly to prepare for that work which has contributed to its losses.