The boss of the struggling shipbuilder Harland & Wolff has stepped down amid concerns for the company’s future.
John Wood led the rescue of the Titanic shipbuilder in 2019 and had been praised for its turnaround.
The company had won part of a £1.6bn contract to build new Royal Navy ships, and in its unaudited financial results for the year to 31 December 2023, reported £87m of revenue.
However, Harland & Wolff had to suspend its shares after it failed to publish the audited version of its accounts.
According to a report in the Financial Times, Wood announced his departure in a text message to directors last night.
The paper also reported that Wood’s departure was a condition of a new £20m loan being discussed with its existing Wall Street lender, Riverstone Credit Partners.
Harland & Wolff has been locked in financing talks with the government for the past year.
The former Conservative government had provisionally agreed a deal to 100 per cent underwrite a £200m loan by a consortium of lenders to Harland & Wolff to allow it to refinance its debts.
However, earlier in the week, it was reported the new Labour administration was on the verge of declining the request, despite the company’s request for the guarantee to be lowered to 80 per cent. The group later denied these claims.
Harland & Wolff already has a $115m (£89m) credit facility with Riverstone.
According to reports, the company could be broken up or sold without new funding.