Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Harland & Wolff bailout sparks concerns over future of Royal Navy warships

by August 2, 2024
August 2, 2024
Harland & Wolff bailout sparks concerns over future of Royal Navy warships

The future of the historic Harland & Wolff shipyard is in jeopardy following a $25 million emergency bailout, raising fears that Royal Navy vessels could soon be constructed abroad.

The Belfast-based company, renowned for building the Titanic, has scrapped its planned restart of ferry services between Cornwall and the Scilly Isles, instead choosing to concentrate on its core operations across four main shipyards in the UK.

Harland & Wolff, which has shipyards in Belfast, Appledore in Devon, Methil, and Arnish in Scotland, announced the decision to cease non-core activities after securing crucial funding from Riverstone, a Wall Street credit investor. The company stated: “It is regrettable that we have taken the tough decision to terminate the fast ferry, but we need to focus our energies and resources on continuing to grow the core business across our four delivery centres.”

The bailout news came with the immediate resignation of John Wood, the company’s chief executive. Harland & Wolff has been propped up by $100 million in loans at a steep 14% interest rate from an American asset manager, and Rothschild & Co has been enlisted to explore strategic options for the company.

Despite these efforts, the financial instability of Harland & Wolff casts doubt over its ability to fulfil a £1.6 billion Ministry of Defence contract to build three military vessels. This situation raises the possibility that these ships could be constructed by a Spanish shipyard, marking the first time in Royal Navy history that warships would be built overseas.

Malcolm Groat, the chairman of Harland & Wolff, expressed gratitude towards their lenders, stating: “We are grateful to our lenders for their continued funding commitment to support Harland & Wolff Group’s stabilisation and long-term strategy objectives. We also look forward to working with the very experienced team from Rothschild & Co to help us achieve that objective.”

Last month, the incoming Labour government declined to support a taxpayer-funded bailout for the shipbuilder, which had its shares suspended on Aim, the junior stock market, after being bought out of administration five years ago.

Read more:
Harland & Wolff bailout sparks concerns over future of Royal Navy warships

0
FacebookTwitterGoogle +Pinterest
previous post
Blinken says Venezuela’s Nicolas Maduro lost election before claiming victory with ‘no supporting evidence’
next post
Intel to cut 15,000 jobs in bid to catch up in AI chip race

You may also like

Solar energy 101: a guide for landowners

March 29, 2023

Homeowners face £3,000 rise in mortgage payments

December 30, 2022

3 marketing channels that new eCommerce businesses can’t...

October 29, 2023

How To Maximize Value and Growth Of Business...

October 10, 2024

Trump hails ‘magnificent victory’ as projected winner of...

November 6, 2024

Rokt Partners with Oracle Red Bull Racing to...

February 3, 2023

Energy UK backs scheme to cut profits from...

September 2, 2022

Summer Job Cuts as Minimum Wage Increase Bites

June 17, 2024

Motivation, Maintenance & Management: Retaining talent throughout 2023

May 31, 2023

RMT announces three days of rail strikes in...

June 23, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns Rand Paul he’s playing into ‘hands of the Democrats’ with ‘Big, Beautiful Bill’ opposition

      June 1, 2025
    • White House urges Iran to accept nuclear deal as IAEA reports uranium enrichment spike

      June 1, 2025
    • Israel hostage deal in doubt as Hamas adds demands, US envoy calls terms ‘unacceptable’

      May 31, 2025
    • Iran condemns Austria over report on advanced nuclear weapons program

      May 31, 2025
    • Michelle Obama facing backlash over claim about women’s reproductive health

      May 31, 2025
    • Hamas agrees to release 10 more hostages

      May 31, 2025

    Categories

    • Business (8,105)
    • Investing (2,000)
    • Politics (15,453)
    • Stocks (3,119)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved