The financially troubled ‘strategic infrastructure projects’ group has announced that it has been awarded an additional $25m funding facility.
That now takes its total commitment up to $140m under that facility.
It has also taken a number of corporate decisions to help to stabilise its operations.
The group announced that it is immediately ceasing the operation of all of its passenger services between the Isles of Scilly and Penzance, reducing its services to those just based out of its Appledore, Arnish, Methil and Belfast delivery centres.
Additionally, the group will not be proceeding with its ‘fast ferry service’ with the fast ferry expected to be out for disposal.
Importantly, it is noted that the company has formally engaged Rothschild & Co as financial adviser to assess strategic options for the group.
Embattled Chairman Malcolm Groat stated that:
“We are grateful to our lenders in continuing their funding commitment to support Harland & Wolff Group’s ongoing 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.
It is regrettable that we have taken the tough decision to terminate the fast ferry, but we need to focus our energies and resources in continuing to grow the core business across our four delivery centres.
This decision aligns with and brings us back to our fundamental five markets and six services strategy.
Our ferry service team will be working closely with passengers and other counterparties to ensure a smooth transition out of this business.”
The group’s shares are currently trading at around the 8p level, at which the group is capitalised at £14.7m.