The Scottish Government is prepared to provide a £15 million loan to troubled engineering firm BiFab according to Economy Secretary Keith Brown.
Pledging to underwrite the rescue deal was a key move in preventing the firm from financial collapse last week.
Main contractor Seaway had refused BiFab’s requests for payments and the two parties argued over who was responsible for paying for changes in the specifications in manufacturing wind turbine foundations and amendments to transportation schedules.
Partners in the Beatrice windfarm project -
Backed with the offer of hard cash -
Otherwise the Arnish yard on Lewis would have shut. The firm’s two sites in Fife also faced closure.
First Minister Nicola Sturgeon led a Scottish Government team in brokering a deal just in time to avoid the company’s expected fall into administration.
BiFab filed its intent intention to appoint administrators on Friday 10 November.
As Hebrides News highlighted that move would protect the company from its creditors for a vital few days during, allowing breathing space to seek a solution to their financial difficulties.
“Extensive discussions” by the Scottish Government with the company, trade unions and key customers provided “enough comfort” for BiFab to delay a decision to place the company into administration immediately, said Keith Brown.
The First Minister was kept fully up to date and she raised with Prime Minister Theresa May.
Nicola Sturgeon also made a number of phone calls to SSE and Seaway Heavy Lifting whilst she was in Bonn for a major international climate change event.
This engagement continued over the next week, culminating in two days of discussions last Friday and Saturday last week led by the First Minister with all key companies.
These talks helped to broker a commercial agreement with the parties involved that would relieve the financial pressure on BiFab and ensure the continuation of the contract for the construction of jackets for the Beatrice Offshore Windfarm project.
Keith Brown said: “The agreement also ensures that the contract for the Beatrice project is now fully funded.
“As an added security the Scottish Government has committed to make available, if necessary, on a commercial basis a loan to BiFab.
Keith Brown added: “I want to take this opportunity to pay tribute to the workforce on all three sites – Burntisland, Methil and Arnish.
“Our focus was and remains on the workers, their families and the surrounding communities.
“This must have been an anxious time for the workers, their families and the communities involved.
“However, since news broke that the company could possibly go into administration, the workforce has handled the situation with great poise – and great tenacity.
“The workers agreed to continue working on the current order even though they might not be paid.
“I met with worker representatives during the rally outside the Scottish Parliament. They were determined to see a resolution and determined to see themselves as part of the solution. I would like to pay tribute to their perseverance.”
£15 million loan available to underwrite BiFab rescue
24 November 2017
