Harland & Wolff: Spanish rival nears deal to buy Titanic shipbuilder
Spanish state-owned shipbuilder Navantia is reportedly closing in on a deal to buy Titanic maker Harland & Wolff out of administration.
The two firms are in exclusive talks that could result in Navantia taking control of the Belfast-based company in late November, The Sunday Telegraph reported.
The potential sale would reportedly include all four of Harland & Wolff’s yards in Belfast, Devon, the Isle of Lewis and Fife.
The deal remains subject to ongoing negotiations with US lender Riverstone Holdings, which Harland & Wolff owes at least $140m (£107m) in high-interest loans, it was reported.
However, it was said that Riverstone was expected to accept a haircut to those debts subject to receiving the rest of its money back in instalments over time.
Navantia and Teneo, the administrators, declined to comment. Riverstone did not respond to a request for comment.
Russell Downs, Harland & Wolff’s interim executive chairman, said: “The core activities of the group’s four yards continue to trade with support of all stakeholders and we will provide an update on our strategic process when it’s timely to do so.”
Navantia has reportedly agreed to provide temporary funding to Harland & Wolff while talks continue.
The Spanish giant is said to be giving the emergency cash to Harland so it can continue preparations for a £1.6bn Royal Navy shipbuilding contract jointly awarded to both firms to build three fleet solid support tankers.
Harland has been looking for a potential buyer since it entered administration last month, a development which has put its roughly 1,000 workers at risk of job losses.
The company was plunged into crisis in July when the new Labour government said it would not guarantee a £200m restructuring loan over concerns of taxpayer losses.