BiFab on brink three times before rescue

engineering firm BiFab was on the brink of administration three times last week as talks to secure its future took place, it emerged yesterday.

An agreement was reached on Saturday that will lift the threat of administration and see work continue on the contract for the Beatrice Offshore Windfarm.

A financial package to complete the contract has been provided by Seaway Heavy Lifting, SSE and the partners to the Beatrice Offshore Windfarm project, JCE Offshore.

economy Secretary Keith Brown MSP said the agreement will secure work until next April.

The Scottish government has also indicated, if necessary, it will make a commercial loan facility available to BiFab.

Mr Brown told the BBC Sunday Politics show: ‘it is very good news. What we have to do now, and we’re actively involved in this with some very promising early signs, is make sure they can win further work for the yard, that we can see additional capital investment going in and further training of the workforce.’

Burntisland Fabrications (BiFab), has a workforce of 1,400 employees, contractors and subcontractors at its yards in Burntisland and Methil in Fife and Arnish on the isle of Lewis.

The company, which makes equipment for the oil and gas industry and the renewable energy sector, filed a notice of intention to appoint administrators a week ago because of cash flow problems.

Mr Brown said: ‘During the week we three times had to stop BiFab from going into administration. They had to have a deal.

‘They could not sustain a situation where they had people working without wages so they were on the brink three times last week.’

The agreement will see BiFab receive payments to alleviate cash flow issues, enabling the threat of administration to be lifted.

First Minister nicola Sturgeon said: ‘i am pleased that we have been able

‘It will be a huge relief to employees’

to broker a commercial agreement that lifts the threat of administration from BiFab and allows work on the current contract to continue.’

Trade unions GMB and Unite praised the role of the Scottish government and Miss Sturgeon in brokering the deal.

Jan Willem van der graaf, chief executive of Seaway Heavy Lifting, said: ‘We look forward to BiFab successfully completing the remainder of the Beatrice jacket fabrication.’

Scottish Secretary David Mundell welcomed the news and said: ‘it will be a huge relief to BiFab’s 1,400 employees and their families.’