§ Mr. DuncanTo ask the Secretary of State for Northern Ireland what plans exist to restructure loan stock introduced by Government in 1989 as part of the privatisation arrangements of Harland and Wolff Holdings plc. [19248]
§ Mr. AncramArrangements have been made to replace the Government's existing £60 million unsecured interest-free loan stock repayable by 2019 in the company with a commercially based, interest-bearing and partly secured stock of £6.6 million repayable half-yearly over 10 years. This amount represents the discounted value of £60 million. The arrangements have been concluded following lengthy and detailed negotiation with the company after an approach from the directors, who sought a restructuring of the existing stock on the grounds that this was unduly constraining the commercial, operational and financial freedom of the company in the private sector. Adequate legal safeguards continue to be retained by the Government within the revised convenants and other material conditions of the new stock in relation to the company's continuing commitment to shipbuilding and the provision of employment opportunities in Northern Ireland.