Harland and Wolff Group (AIM: HARL) has announced it struck a deal with its US lenders to extend loans by $25million (£19.5m) but said CEO John Wood has left with “immediate effect”.
The firm, most famous for operating the Belfast shipyard that built the Titanic, has been in a struggle to avoid collapse in recent weeks.
The company said it is still seeking “strategic options” with bankers Rothschild & Co, including a potential sale of the business which also operates fabrication facilties in Arnish, near Stornoway, and another in Methil, Fife.
Harland and Wolff had suspended trading in its shares on the London Stock Exchange last month after it is thought it was unable to secure a £200m government loan guarantee which meant it delayed signing off its accounts.
Its loan extension brings the firm’s debt pile to $140m.
The firm further added it has shut down its ferry service between Penzance and the Isles of Scilly.
Chairman Malcolm Groat said: “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.
“The board look forward to Russell Downs and Alan Fort joining us once their appointment formalities are completed and, in the meantime, I wish to place our thanks to John for his invaluable contribution to the company’s business and wish him the very best in his future endeavours.
“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.
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