Cash injection for Harland & Wolff comes at crucial time: Gavin Robinson MP

Mr Robinson was commenting after the shipyard’s owners confirmed the company has entered into arrangements with its existing lenders to increase its existing facility by $25m in order to improve and stabilise its liquidity position.

The business, which was last month hit by news the UK Government was not proceeding with a £200m loan, also confirmed it has brought in Rothschild & Co to advise on strategic options.

Mr Robinson said the additional cash was coming at a “crucial time”.

He said: "The injection of liquidity at this crucial time will give the space required to crystallise plans for the future.

"It's important that the new management are given the time and space, with the assistance of government, to secure long term stability in the weeks ahead”.

Harland & Wolff’s new agreement with its lenders brings the total commitments under the H&W facility to $140m.

John Wood, former chief executive of H&W, has terminated his employment with effect from 31 July. Russell Downs and Alan Fort are scheduled to join the board as soon as the necessary on-boarding and due diligence procedures have been completed.

Company chairman Malcolm Groat, said: "We are grateful to our lenders in continuing their funding commitment to support Harland & Wolff Group's ongoing stabilisation and long-term strategy objectives.

"The board look forward to Russell Downs and Alan Fort joining us once their appointment formalities are completed and, in the meantime, I wish to place our thanks to John for his invaluable contribution to the company's business and wish him the very best in his future endeavours."

Matt Roberts of the GMB union has also welcomed the news that financing has been confirmed and received.

He said: “Now the company can focus on its core business and what we know GMB members can deliver.

“Harland and Wolff’s four core sites across the UK remain crucial to our domestic sovereign capabilities in shipbuilding and renewables fabrication".