Harkand collapses with loss of 170 N. Sea jobs in crude oil price slump

The Harkand Da Vinci
IN HAPPIER TIMES: The Harkand Da Vinci

More than 170 jobs – mostly in Grampian – have been axed after North Sea shipping and oil services operator Harkand has been put into Administration.

There is no official statement from the company, whose website has been down since yesterday.

However the company’s answering machine message in Aberdeen office confirms that the Harkand Group and several of subsidiary companies are in administration.

In a recorded message the company said that on Wednesday, May 4, Deloitte were appointed joint administrators of Harkand Group and its subsidiaries including  Harkand Global Holdings Ltd; Harkand Gulf Ltd; Harkand Gulf Contracting Ltd; Harkand AME Ltd; ISS Acquisitions Ltd; ISS Group Holdigns 1 Ltd; ISS Holding Ltd; Integrated Subsea Ltd; ISS HR Services Ltd.

This will result in 171 jobs lost, although 39 staff will be retained for a short period to assist with the wind-down of the European business, Deloitte said.

Harkand collapsed into administration after being served with writs for unpaid harbour-services in the US and its bareboat charters for two dive support vessels –  Harkand Atlantis and Harkand Da Vinci were terminated just over a month after they were scheduled for the Flyndre job for Maersk Oil.

The London-based Harkand group currently employs about 400 staff and has an estimated turnover of £357 million per year.

Ian Wormleighton, joint administrator for Deloitte, said: “The business has faced losses as a result of the prolonged depression in global oil prices.

“Despite the group’s directors seeking to find a solution with its financial stakeholders, a restructuring could not be achieved.

“The directors’ decision to appoint administrators came after they could not facilitate a sale of the business in its current state or obtain additional capital to continue to trade.

“Whilst it is disappointing that the majority of the European business is to be wound down, we are still hopeful to be able to save a significant number of jobs in the group’s US and Africa business, and we’re confident of securing a buyer for its Aberdeen-based Andrews Survey business.”

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