Can Shipbuilder Harland & Wolff Survive?
Harland & Wolff will not be able to finalize its accounts for 2023 on a going concern basis and has suspended work to complete its unpublished accounts, as it seeks out options to stay afloat.
Shares of the firm, which built the Titanic more than a century ago, were suspended on London's Alternative Investment Market (AIM) in July after it failed to submit audited accounts.
The shipbuilder, which survived closure once in 2019, sent its CEO on immediate leave in July and named restructuring expert Russell Down as interim executive chairman to oversee "a recapitalization intended to give the company sustainable financial footing."
The Belfast-based shipyard has struggled to keep up with competition and is currently working with its financial adviser Rothschild & Co for options to preserve core operations at its delivery centres in Belfast, Appledore, Methil and Arnishis.
The company said it remains reliant on the support of its existing lender, Riverstone, which at the start of August increased its facility by $25 million to provide short term liquidity. With resources focussed on Rothschild's process, the board currently do not believe it can finalise its 2023 accounts on a going concern basis, it said on Monday.
Harland & Wolff said the present suspension of its shares will remain in place and that it was focussed on working with interested parties to find the best options for preserving the firm.
(Reuters reporting by DhanushVignesh Babu and Chandini Monnappa in Bengaluru; Editing by Varun H K)