The chief executive officer (CEO) at Harland & Wolff, John Wood, has stood down from the role as the firm looks to fundraise in order to avoid collapse.

Wood took over as CEO five years ago after saving the Belfast-based shipbuilding firm from administration.

The FT has reported that his departure was a condition for a new £20m loan from US lender, Riverstone, which is aimed at keeping the business afloat.

It comes after civil servants warned the new Chancellor, Rachel Reeves, that bailing out the company with a £200m loan guarantee would put the UK in unfavourable terms with Brussels, risking breaking EU state aid rules.

Harland & Wolff operates across four yards in the UK and employs over 1,000 workers. Without the loan guarantee, the company may not be able to deliver a £1.6bn Navy contract.

Business secretary, Jonathan Reynolds, is expected to speak in Parliament on Monday to provide an update, with officials set to be focused on safeguarding jobs.

National officer at the GMB union, Matt Roberts, said: "The recent history of these yards has been one of squandered opportunities, and governments across the UK must now work with management and unions to find a new way forward."

The firm also announced that Russell Downs is set to join the board an interim executive chairman, subject to client on-boarding procedures and due diligence.

He brings over 30 years of experience to the role, having worked across a spectrum of industries.

Downs said: "I am very pleased to take on this role after a challenging period for the Group as it transitions from one leadership team to another and deals with the increasing speculation over its future. The great weight of responsibility for all stakeholders involved in the business to secure a long-term future is crystal clear to me and I am enormously honoured to be given the responsibility to find a solution. I will be working tirelessly in consultation with employees, management, customers, suppliers, unions, government agencies and other stakeholder groups in the coming weeks."

---