Harland & Wolff failed to secure a government loan guarantee and is exploring refinancing and strategic options after the CEO's exit.
Harland & Wolff’s debt crisis took another turn on Friday as the Belfast shipbuilder failed to secure a £200 million loan guarantee from the UK government, and subsequently chief executive John Wood exited with immediate effect.
According to a statement, Wood is taking a “leave of absence”.
Meanwhile, Russell Downs, a restructuring expert, has been appointed as interim executive chair.
It is now resuming talks with its existing lender, with the hope of securing new financing within days.
At the same time, an investment bank has been hired to explore strategic options, which may include a potential sale of the company.
Harland & Wolff had applied for the government loan guarantee as it sought to refinance a £90 million high-interest loan, as well as fund its operations to satisfy a major Royal Navy contract.
