The chief executive of Belfast-based Harland and Wolff has quit as the shipyard seeks emergency lending to keep it afloat, according to reports.
And it faces being broken up and put up for sale if a new loan is not agreed, according to the Financial Times.
The FT, citing “several people familiar with the situation,” said CEO John Wood’s departure had been expected as a condition of a new £20m loan from its Wall Street lender, Riverstone Credit Partners.
The infrastructure and shipbuilding company already had a high-interest $115m credit facility with the group.
According to the FT, Mr Wood announced his departure in an overnight text to directors.
Belfast Telegraph has asked the company, and Riverstone, for comment.
Harland & Wolff had won part of a £1.6bn Royal Navy contract but is yet to publish audited accounts, suspending trading on the AIM on July 1.
The FT reported earlier this week that the UK government was due to turn down a loan guarantee of £200m which would have helped Harland & Wolff secure lending at a lower rate than its Riverstone credit.
It said that Mr Wood’s exit would enable a new financing agreement with Riverstone.
Harland & Wolff employs around 1,500 around four shipyards in the UK, including Belfast.
Uncertainty is also hanging over the future of Spirit AeroSystems factory in east Belfast.
The US aerospace giant is being sold to Boeing, with Airbus entering an agreement to acquire part of the Belfast site where wings are manufactured for its A220 plane.
Last week Belfast Telegraph revealed that Bombardier, which used to own the operation, has a “strong interest” in reacquiring the parts of it which aren’t being taken over by Airbus.