Cash strapped engineering firm BiFab was plucked from the verge of collapse three times last week as intensive talks over its future played out, economy secretary Keith Brown said.
BiFab saved from administration three times last week
21 Nov 2017
Eventually, concessions were thrashed out which lifted the threat of administration from the fabrication firm.
The last minute agreement means the yards at Arbish and Fife will not close and work continues on the current contract for the Beatrice offshore windfarm.
But the situation was touch and go in recent days.
Keith Brown said: “During the week we three times had to stop BiFab from going into administration. They had to have a deal.”
He told the BBC Sunday Politics show: "They could not sustain a situation where they had people working without wages so they were on the brink three times last week.
“We've managed to avoid that and also now to give added certainty that these contracts will be seen through till April.”
Without that progress BiFab was expected to fall into administration early this week.
The Scottish Government led talks during a stalemate and brokered a deal.
Intensive negotiations took place with BiFab, Seaway Heavy Lifting, SSE, Siemens, and the partners in the Beatrice Offshore Windfarm project.
The Scottish Government will also make a commercial loan facility available to BiFab, if required.
The outcome means BiFab will receive payments to cover its immediate cash flow problem. This removes the threat of administration and ensures the full funding of the Beatrice contract.
Arnish is expected to continue working until Christmas and the Fife yards to April.
However, uncertainty still shadows the long term future of the company.
