Time running out for Titanic shipyard

STRICKEN Belfast shipbuilder Harland & Wolff could go into receivership by the end of the month, costing up to 500 jobs, unless rescue plans win Government backing.

Talks are being held with representatives of Northern Ireland's power-sharing administration. But insiders warn that the yard, which built the Titanic, probably cannot continue as a going concern for more than three or four weeks.

Directors are concerned that they could soon be in breach of the Companies Act if they allow H&W to continue to trade when it becomes insolvent. But one senior source said: 'It is our hope and expectation that over the next few weeks we will have been able to do something other than liquidation.'

H&W, whose massive gantry cranes still dominate the Belfast skyline, has produced a business plan to close its steel workshops and concentrate on ship repairing and work for offshore wind-farms.

Controversially, it wants to sell long leases on a tranche of waterfront property to its parent group, Fred Olsen of Norway, for about £20 million. But a Government go-ahead would be needed for the land to be used for commercial and residential development, rather than shipbuilding.

There were concerns that previous sales of waterfront land by H&W to Fred Olsen could have raised more on the open market. It formed the basis of the Titanic Quarter development which is likely to be extended to include the new 72-acre site.

A spokesman for H&W told Financial Mail that although the latest sale would ideally be conducted through an open market auction, time was now too tight for such a process.

He added: 'We will still get open market valuations because people need to be very clear that this is not a stitch-up.'