Government loan of £15m available to BiFab

The rescue deal lifted the threat of administration hanging over BiFab

The Scottish government is prepared to lend the troubled engineering firm BiFab up to £15m, according to Economy Secretary Keith Brown.

The minister told MSPs that if the loan was required, it would be extended to the firm on commercial terms.

He said the offer helped unlock a financial package from BiFab's business partners which lifted the threat of administration.

The firm employs 1,400 people at yards in Fife and Lewis.

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An agreement was reached on Saturday which saw BiFab receive payments to alleviate its "immediate cash flow issues".

A financial package has been provided by Seaway Heavy Lifting, SSE and windfarm partners JCE Offshore.

It means that the firm can continue working on a contract for the Beatrice Offshore Windfarm.

In a statement at Holyrood, Mr Brown said the government would continue to work to secure the long term future of BiFab.

Nicola Sturgeon said there was "every reason to be optimistic" about BiFab's future

He revealed how close the company came to calling in administrators in a "crisis environment".

"On three occasions the company was about to go into administration and twice I phone them to postpone that so we could get the time and space to work."

And he paid tribute to the "great poise and great tenacity" of the workforce.

"They agreed last week to work on the current order even though they might not have been paid," he said.

Mr Brown's statement followed a visit to BiFab's Methil yard by the Nicola Sturgeon.

The first minister said the firm had been "within minutes" of calling in administrators but she was optimistic about its future.

She added: "One of the reasons I wanted to visit here today to speak to the workforce is just to make clear the Scottish government will play our full part in trying to secure the longer term future of this company.

"There is every reason to be optimistic but that doesn't mean there is not a lot of work that needs to be done including investment that needs to be done to secure it."