Details of BiFab rescue deal outlined

Written by Tom Freeman on 23 November 2017 in News

Economy Secretary Keith Brown reveals financial package for struggling engineering company

Keith Brown - Scottish Parliament

Fife engineering firm BiFab have been offered a loan of up to £15m by the Scottish Government, Economy Secretary Keith Brown has revealed.

The commercial loan would be on top of payments agreed with commercial partners at the weekend to lift the threat of administration from the firm, which is currently working on an offshore windfarm.

In a statement to the Scottish Parliament, Brown said the Scottish Government would continue to work to secure the company’s long term future.

 

“The agreement that was reached on 18 November lifted the threat of administration and stated that BiFab would receive payments at the beginning of this week to alleviate its immediate cash-flow issues,” he told MSPs.

“I am pleased to report that those payments have been made. 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 making available to BiFab a loan on a commercial basis, if necessary.

“That in part reflects our belief that there is a long-term viable future for BiFab, so we will work with the company to support its future prospects. Employees are back at work and are being paid, and money has been made available to BiFab this week to allow it to get on and fulfil the contract.”

In 2015, the low-carbon and renewable energy economy supported 58,500 jobs in Scotland, accounting for about 14 per cent of the total UK employment in the sector.

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