It may be of little comfort to shareholders of the Belfast-based shipyard group Harland & Wolff (LON:HARL), but over the weekend, we have learned that one of its ‘partners’ is interested in taking the company out of its Administration state.
The Spanish State-controlled Navantia Group is said to be in ‘exclusive’ talks with Teneo, the H&W Administrators, about some sort of deal that could be good news for the shipyard group’s 1,000 workers.
The Madrid-based Navantia group designs and builds military and civilian ships with high technology and innovation.
Its ‘SMARTShips’ address the essential elements for new ships over the next decade or two, as they look to explore and incorporate innovations to anticipate Navantia’s response on new threats, new linked operations between services, new materials and production methods, reduced crew operation, new propulsion and energy generation concepts, new combat systems, extensive use of UxV, and new and enhanced sensors and communication systems.
H&W and Navantia are partners in a £1.6bn Government programme concerning the construction and supply of three Fleet Solid Support tanker ships for the Royal Fleet Auxiliary, which is believed to be worth some £700m to H&W.
The RFA requires the FSS ships to support the two new Queen Elizabeth-class aircraft carriers with food and munitions.
Navantia is believed to have already made available some lines of emergency funding to H&W so as to enable the shipyards to continue their operations, while alternatives are under investigation.
Of importance to both Teneo and H&W is the pressure caused by its debt negotiations with Riverstone Holdings over repayment of the $140m high-interest facility that has been taken out by the Belfast group.
Realistically, rumours suggest, Riverstone may well have to take a partial hit on any time-delayed settlement.