New Isles of Scilly ferry service

[whole diary]

[froome]

...first sailing now postponed to 20th August, "due to unforeseen reasons, beyond it's control"

..........crew shortage? 

Wrong sort of waves?

[eightonedee]

Sadly, recent press articles about Harland & Wolff's financial difficulties indicate a shortage of cash might be the problem.

[Chris from Nailsea]

In view of the continual delays, may we perhaps just take off the "delayed until mid-July" from the title please?
Just make it "New Isles of Scilly ferry service".

Bearing in mind in 2025 plans will be drawn up for the Scillonian replacement.
With perhaps a year for building.

Agreed, and done.  I've also moved the topic to this board, where other ferry issues are covered.

Hope this helps!  CfN.   

[GBM]

Atlantic Wolff has ceased trading (before it started).
Harland and Wolf have advised they've cased all Scilly operations.

It's reported on local radio, but nothing on the BBC^» (British Broadcasting Corporation - home page) web as yet.
Cornwall Live (complete with many clicks) https://www.cornwalllive.com/news/cornwall-news/live-scilly-ferries-announce-sudden-9451528

[stuving]

Atlantic Wolff has ceased trading (before it started).
Harland and Wolf have advised they've cased all Scilly operations.

It's reported on local radio, but nothing on the BBC^» (British Broadcasting Corporation - home page) web as yet.
Cornwall Live (complete with many clicks) https://www.cornwalllive.com/news/cornwall-news/live-scilly-ferries-announce-sudden-9451528

This is part of a deal to allow the main business to avoid administration, by cutting non-core activities. I guess the backers are saying "no point investing in the future if you go bust this year". From City AM:

Harland and Wolff: Titanic shipbuilder staves off collapse after securing emergency £20m loan
By: Guy Taylor

The Belfast shipyard said it had entered into agreements with lenders to increase its existing credit facility by $25m (£19.5m).
...
However, the announcement was followed by a decision from the shipyard to withdraw its Scilly Isle ferries service, which runs between the islands and Penzance.

In a statement, Harland said it would be “winding down business lines that are deemed to be non-core for the company” as it looks to cut costs.

The new Scilly Ferries service was set to run its first trips on 22 July, but kick-off was delayed due to Harland’s financial issues.

[Chris from Nailsea]

Atlantic Wolff has ceased trading (before it started).

Should I now amend this topic heading again, to include '... not happening' ? 

From the BBC^» (British Broadcasting Corporation - home page): see https://www.bbc.co.uk/news/articles/ck5gkxg700jo 

[Chris from Nailsea]

From the BBC^» (British Broadcasting Corporation - home page):

Titanic shipyard to go into administration

Shipbuilding company Harland and Wolff has confirmed the business is to be placed into administration for the second time in five years.

Insolvency practitioners Teneo are being lined up to act as administrators and some "non-core" staff are being made redundant.

However, the company’s board said there was a "credible pathway" for its four shipyards to continue trading under new ownership.

Its main yard is in Belfast, best known for building the Titanic, with other operations at Appledore in England and Methil and Arnish in Scotland.

The company said the administration process would be confined to the holding company, Harland & Wolff Group Holdings plc, and the operational companies which run the yards are expected to continue trading.

However, shareholders will see the value of their investments in the business entirely wiped out.

The firm said its non-core operations are being wound down.

That process had already started with the closure of its Scilly Isles ferry service before sailing had even begun.

(... news article continues ...)

[GBM]

From the BBC^» (British Broadcasting Corporation - home page):

Titanic shipyard to go into administration

Shipbuilding company Harland and Wolff has confirmed the business is to be placed into administration for the second time in five years.

Insolvency practitioners Teneo are being lined up to act as administrators and some "non-core" staff are being made redundant.

However, the company’s board said there was a "credible pathway" for its four shipyards to continue trading under new ownership.

Its main yard is in Belfast, best known for building the Titanic, with other operations at Appledore in England and Methil and Arnish in Scotland.

The company said the administration process would be confined to the holding company, Harland & Wolff Group Holdings plc, and the operational companies which run the yards are expected to continue trading.

However, shareholders will see the value of their investments in the business entirely wiped out.

The firm said its non-core operations are being wound down.

That process had already started with the closure of its Scilly Isles ferry service before sailing had even begun.

(... news article continues ...)

Not able to click through from the link
Maybe this will work
https://www.bbc.co.uk/news/articles/crkddrv7v2po

[Chris from Nailsea]

Thanks, GBM - I made a right pig's breakfast of that hyperlink - now corrected. 

[GBM]

Oddly, the H&W freight services are still running on the Scillies services.

[CyclingSid]

MoD has just ordered new supply ships from H&W https://www.forcesnews.com/services/navy/fleet-solid-support-ships-contract-royal-navy-will-go-ahead-troubled-belfast-shipyard

[stuving]

MoD has just ordered new supply ships from H&W https://www.forcesnews.com/services/navy/fleet-solid-support-ships-contract-royal-navy-will-go-ahead-troubled-belfast-shipyard

This order was in fact placed in January last year, with the Resolute consortium including H&W. Most reporters and headline writers have struggled to make the distinction between the shipyards businesses (trading and solvent) and the group holding company (being wound up as insolvent). Even Hilary' Benn's statement doesn't manage to, perhaps because both companies are just called Harland and Wolff.

[Chris from Nailsea]

An update, from the BBC^» (British Broadcasting Corporation - home page):

Titanic shipbuilder formally enters administration

Harland and Wolff, the Belfast-based shipbuilder which built the Titanic, has formally entered administration for the second time in five years.

Last week the company’s board had warned that the move was inevitable.

The administration process is confined to the holding company, Harland & Wolff Group Holdings plc, with the operational companies which run the yards continuing to trade.

Its main yard is in Belfast with other operation at Appledore in England and Methil and Arnish in Scotland.

The company’s executive chairman, Russell Downs, is optimistic that a new owner or owners will be found for the yards.

Gavin Park and Matt Cowlishaw of Teneo Financial Advisory have been appointed as joint administrators.

The holding company currently has 59 employees.

In a statement Harland and Wolff said: "The Administrators will unfortunately be required to reduce the headcount upon appointment.  A number of employees will be retained to provide certain required services to the operational companies under a transitional services agreement with the Administrators."

The company has also restated that the administration process means that shareholders in Harland and Wolff will see the value of their investment wiped out.

Famous for building the Titanic, the Belfast shipyard was founded in 1861 by Yorkshireman Edward Harland and his German business partner, Gustav Wolff.  By the early 20th Century, Harland and Wolff dominated global shipbuilding and had become the most prolific builder of ocean liners in the world.

Harland and Wolff was bought out of administration in 2019.  Its then Norwegian owners had withdrawn support and the business fell into insolvency, having not built a ship in a generation.

The new owner, Infrastrata, was a small London-based energy firm which did not have significant experience in marine engineering.  Infrastrata later changed its name to Harland and Wolff and in 2022 won a major Royal Navy contract as part of a consortium led by Navantia, Spain’s state-owned shipbuilder.

However financial losses mounted as it scaled up its operations.  The 2021 accounts, which covered a 17-month period, showed a loss of more than £25m.  The audited annual accounts for 2022 showed turnover of £28m and a loss of about £70m with the auditor’s opinion of "material uncertainty" about the firm’s ability to continue as a going concern.  Unaudited accounts for 2023 saw a loss of £43m.

The company was increasingly reliant on high-interest borrowings from a specialist US lender, Riverstone.  It was also pinning its hopes on getting government loan guarantee that would allow refinancing with more conventional lenders.

In July the new government confirmed there would be no support as there was "a very substantial risk that taxpayer money would be lost".

Russell Downs, a restructuring expert, was parachuted in to act as executive chairman and began a strategic review of the business along with advisors from Rothschild bank.