A problem is Harland and Wolff are very dependent on financing - the Govt had to guarantee their latest loan 100% I understand. Its basically a subsidy for N Ireland
Slipped out 2 days before Christmas. The guys who run H&W are masters at getting public funding for their N Ireland ventures. They started out as a tiny oil company"In order to ensure that the proposed loan facility is compliant with relevant rules where UKEF is to provide a 100% guarantee to UK commercial lending banks, UKEF will appoint an independent 3rd party to ascertain an appropriate premium over SONIA. This process will commence in January 2024.
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Harland & Wolff has secured government approval to progress negotiations for a £200m guaranteed loan facility with UKEF. The news prompted a strong reaction from markets, sending HARL shares 24% higher in early trade. HARL said its current cash reserves plus expected cashflows from existing contracts in 2024 will be sufficient to cover its working capital requirements until the new loan facility is completed. Following the government green light, Harland will now firm up the bank syndicate, appoint a lead arranger and commence documentation in relation to the credit and guarantee agreements as well as security package that will be offered. It is likely the security package will entail providing the lending banks with a first charge on all of HARL 's assets, similar to what was provided to Riverstone Credit Partners in March 2022.
This transaction will be subject to approval by the Government, final approval of the financing terms, and Investment Committee approvals of the lending banks."
" As the business environment became increasingly competitive the yard began to have difficulty in generating enough business to meet overhead expenses. The yard was last profitable in 2015 and the following year it had an operating loss of £6 million.[size=8333px] [/size]In 2018, the parent company
Fred. Olsen & Co. restructured and decided to place Harland and Wolff up for sale. No buyer emerged and on 5 August 2019 the company announced that they would cease trading and entered formal administration.[size=8333px] [/size]Subsequently, on 1 October 2019, it was announced that the shipyard had been bought for £6 million by the London-based energy firm, InfraStrata."