(Bloomberg) -- The UK government is close to a deal to aid in the rescue of Titanic shipbuilder Harland & Wolff, a person familiar with the matter said, despite earlier refusals to do so.
An announcement could come as soon as Thursday, the person said. It comes after reports earlier in the week that H&W was set to be bought by Spanish rival Navantia, in a £70 million ($88 million) government-backed deal.
The loss-making shipbuilder had applied for a loan guarantee from the government of up to £200 million earlier this year, but it was rejected after Labour won July’s general election amid fears it would be too risky for taxpayers. The UK government is now prepared to act as guarantor, in a shift initially reported by Politico.
Navantia is set to take over all of H&W’s four sites, the main one of which is based in Belfast, Northern Ireland. It comes after H&W slipped into administration earlier this year, after being bought out of administration in 2019 by InfraStrata, a small energy firm with little experience in shipbuilding.
The company had become dependent on high-interest loans, and hoped a guarantee from the government could help it refinance on a more sustainable basis.
Sky News reported Tuesday that H&W would also benefit from improved terms to a contract to build three vessels for the Royal Navy. Navantia, meanwhile, will guarantee the security of H&W’s 1,000-plus workforce for a certain period.
The Department for Business and Trade did not respond to a request for comment.
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