Harland and Wolff ‘can still deliver naval contract’

The Harland and Wolff holding company is likely to be placed into administration sometime in the next two weeks.

However, the shipyards are in separate operating companies so they can continue trading while the sales process is completed.

Mr Downs said there should be a list of bidders within the next 10 days and he hopes a deal or deals can be concluded by the end of October.

He suggested the government will have a role in approving buyers given the FFS contract is Harland and Wolff’s major asset.

“We have to pick someone we have an expectation will clear those hurdles quickly,” he added.

Mr Downs also confirmed a report in the Financial Times, external that he has launched an investigation into the possible “misapplication” of about £25m at the business.

It is essentially an examination of spending decisions taken by the previous management. It does not imply wrongdoing.

The company’s former chief executive, John Woods, told the Financial Times that the allegation of misapplication of funds was “ridiculous”.

Harland and Wolff has been heavily loss-making and its shares have been suspended since the beginning of July, after it failed to publish audited accounts.

Later that month, ministers rejected the firm’s application for a £200m loan guarantee.

Business Secretary Jonathan Reynolds told parliament at the time: “Government funding would not necessarily secure our objectives and there is a very substantial risk that taxpayer money would be lost.”