H&W shareholders worried by 'administration plan'

Shareholders fear the value of their investment will be wiped out

A group of Harland & Wolff shareholders fear the business is being lined up for a "pre-pack" administration.

That would see the shipbuilder enter administration and its trading assets would immediately be sold to a pre-determined buyer.

It should mean minimal disruption to its operations but existing shareholders would see the value of their investment wiped out.

The company said that while a review was under way it would not comment on any "options or interested parties".

It also said it would be unable to finalise its 2023 accounts on a going concern basis and, therefore, work to complete its unpublished accounts had been suspended.

Management will instead focus on the review process being led by Rothschild bank.

Russell Downs, Harland & Wolff executive chairman, said: "We remain focussed on working with interested parties and key stakeholders to ensure that we can navigate through this uncertainty, preserving the underlying value in the yards."

Shareholder concerns

The "shareholders collective" says its members own about 30% of the company’s shares.

It is calling for an extraordinary general meeting to ensure that shareholder representation is part of any decision on the company’s future.

It also fears a pre-pack administration could see the company broken up and jobs lost.

The group has made contact with Clive Palmer, the Australian mining tycoon, who has a 3% shareholding in Harland & Wolff and says he is "aligned" with its objectives.

Mr Palmer has long had plans to build the "Titanic II" - the original liner was built a Harland & Wolff’s Belfast yard.

Last week he said he had "expressed interest" in making a $200m (£156.7m) financial contribution on top of a potential contract of up to $1billion (£783m) to build Titanic II.

It is unclear if the $200m (£156.7m) "contribution" would be a loan or an increase in his shareholding.

Trading in Harland & Wolff shares has been suspended since the start of July after the firm missed a deadline to publish independently audited accounts.

Earlier this month the firm agreed a new $25m (£19.5m) loan with its US lender which it said would support the "ongoing stabilisation" of the heavily loss-making business.

The company has also hired the Rothchild bank to "assess strategic options" which could mean it is looking for a new owner.

Harland & Wolff company employs about 1,500 people in the UK.

Its main site is in Belfast and it also has yards at Appledore in the west of England and at Methil and Arnish in Scotland.