Proactive Investors - Belfast shipyard operator Harland & Wolff Group Holdings PLC (LON:HARL) is insolvent and will enter administration this week, the board has confirmed.
The unsurprising announcement comes after months of speculation over the future of the company, which was once the world leader in building ocean liners, including the ill-fated Titanic.
These days associated with making ferries and other marine services, Harland & Wolff has struggled with a raft of cancelled contracts, mounting creditor backlogs, an exodus of board members and a lack of commitment from the UK government.
The latter is according to departed chief executive John Wood, who was seeking a £200 million government to keep the business afloat.
The recently elected Labour government ignored these pleas in July on grounds of "a very substantial risk that taxpayer money would be lost".
Administrators from Teneo have been called in to oversee the process.
In the meantime, Harland & Wolff will resume business activities, although “a further reduction in headcount in our core activities may be necessary”, said the group.
Once a formal administration is signed, Harland & Wolff’s suspended shares will be delisted from AIM and existing shareholders will face a wipeout of their investment.
There are also questions over what Harland & Wolff is calling an “alleged misapplication of remittances in excess of £25m and certain other lower value matters”.
Independent investigations will continue, said the company.