Shipbuilder Harland & Wolff Group Holdings PLC (AIM:HARL) has unveiled an emergency loan from lenders in its latest bid to remain afloat.
The company, which owns the Belfast shipyard where the Titanic was built, announced an agreement to increase its credit facility by US$25 million (£19.5 million) on Thursday.
This takes the total commitments under the facility to US$140 million, which Harland said would improve the company’s liquidity position.
"We are grateful to our lenders in continuing their funding commitment to support Harland & Wolff Group's ongoing stabilisation,” chairman Malcolm Groat commented.
Harland also announced the termination of chief executive John Wood’s contract, noting the move was “in accordance with the provisions of the service agreement”.
Wood had taken a leave of absence earlier this month after the debt-ridden company failed to secure a £200 million loan from Britain’s new Labour government.
Harland’s issues stem from a string of cancelled contracts, with shares in the company having previously been suspended after failure to publish audited results in time.
Reiterating plans to focus efforts on the company’s sites in Belfast, Appledore, Methil and Arnish, Harland said its passenger ferry services between Penzance and the Isles of Scilly had also been withdrawn.
“It is regrettable that we have taken the tough decision to terminate the fast ferry, but we need to focus our energies and resources on continuing to grow the core business,” Groat added.