By C. Perera, JadeTimes News
A group of shareholders at Harland & Wolff is concerned that the company may be preparing for a "pre pack" administration. This process would involve the shipbuilder entering administration, with its trading assets being sold immediately to a pre selected buyer. While this could minimize operational disruptions, existing shareholders would likely see the value of their investments completely erased.
The company has stated that while a review is ongoing, it will not comment on any "options or interested parties." Additionally, H&W announced it would be unable to finalize its 2023 accounts on a going concern basis, leading to the suspension of work on its unpublished accounts. Management is instead concentrating on the review process, which is being led by Rothschild bank.
Russell Downs, the executive chairman of Harland & Wolff, emphasized the company’s focus on collaborating with interested parties and key stakeholders to navigate the current uncertainty and preserve the underlying value of its shipyards.
The "shareholders collective," which claims to own about 30% of the company’s shares, is calling for an extraordinary general meeting to ensure that shareholder interests are considered in any future decisions. They are particularly concerned that a pre-pack administration could lead to the company being broken up and job losses.
The group has reached out to Clive Palmer, an Australian mining magnate who owns a 3% stake in Harland & Wolff. Palmer, who has long standing plans to build "Titanic II"the original Titanic was constructed at Harland & Wolff’s Belfast yard has expressed alignment with the shareholders’ objectives.
Last week, Palmer indicated his "interest" in contributing $200 million in addition to a potential $1 billion contract for the Titanic II project. However, it remains unclear whether the $200 million contribution would be in the form of a loan or an increase in his shareholding.
Harland & Wolff’s shares have been suspended since early July, following the company’s failure to meet a deadline for publishing independently audited accounts. Earlier this month, the company secured a new $25 million loan from its US lender to support the "ongoing stabilisation" of the heavily loss making business. The company, which employs about 1,500 people across the UK, has also enlisted Rothschild bank to explore strategic options, which may include finding a new owner. H&W’s main site is in Belfast, with additional yards in Appledore, Methil, and Arnish.
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