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The chief executive of Harland & Wolff has resigned as the struggling Belfast shipbuilder seeks to negotiate an emergency loan to stave off collapse, according to several people familiar with the situation.
The departure of John Wood had been expected as a condition of a £20mn new loan being discussed with its existing Wall Street lender, Riverstone Credit Partners, according to these people. H&W currently has a $115mn credit facility with the US group.
Wood announced his departure in an overnight text message to directors, according to one manager at the company. H&W and Wood did not respond to a request for comment on Friday morning.
Wood was at the helm of a £6mn rescue of the Titanic shipbuilder from administration in 2019, and had touted progress in turning the company around. The company had won part of a £1.6bn contract to build new Royal Navy ships, but has failed to publish audited accounts and has seen its Aim-listed shares suspended.
Its funding crisis deepened this week after the Financial Times reported that the UK’s new Labour government is poised to turn down a request from H&W for a £200mn loan guarantee to help it secure fresh funding from a group of commercial banks at a lower interest rate.
Wood’s departure would pave the way for an agreement on the new financing arrangement with Riverstone, said one person familiar with the talks.
The company could, however, be broken up and put up for sale unless the new loan is agreed. Its management has been in close touch with the UK government, they added.
