Subocean stuns markets as it fights to stave off failure and save 300 jobs

MORE than 300 jobs were under threat last night at one of Scotland's most-lauded offshore engineering companies in a major blow for the booming renewable energy industry.

Aberdeen-based Subocean - which in recent years had diversified from the oil and gas sector into offshore wind power - is taking steps to avoid going into administration.

The company - listed only last month as one of the fastest growing businesses in the UK - could be sold under one in a series of options to try and secure its future.

Lawyers acting for Subocean, which only last year won a major industry award, have already filed a petition at the Court of Session in Edinburgh, intimating an "intention to appoint administrators" as company bosses seek to protect the 320 jobs at the group - 120 onshore at its Westhill base and 200 offshore. A company insider stressed: "No administrators have been appointed. But the company has had to file a notification to the Court of Session that they are in trouble."

The source added: "A combination of factors are to blame - rapid growth in a very immature market sector, which can't cope with all the contracting issues that result from being in a high risk environment.

"There are also banking issues. But the company is hoping to either sell the business or move the business forward through refinancing to protect the jobs."

Last year Subocean, which specialises in the laying of subsea cables, reported sales of more than 65 million, compared with only 1.7m four years ago, and opened its first European offices at Bremenhaven in Germany to develop its business.

A spokeswoman for Subocean said: "The group is in dialogue with a number of parties who have expressed an interest in investing in or acquiring the business as part of a re-financing solution.

"The directors, who are working tirelessly on re-financing the business, firmly believe that these discussions are in the interests of the staff, creditors and stakeholders of the business. In order to provide a period of stability that will allow these discussions to take place in an orderly fashion, a moratorium is now in place following the filing of a notification to the Court of Session in Edinburgh on Tuesday afternoon."

Brian Adam, the SNP MSP for North Aberdeen, said: "This is very worrying news, not just for the staff and their families but because this is such a well known and innovative firm that has been at the cutting edge of developments in the North Sea and indeed elsewhere in the world. Its innovative approach to subsea developments is important to the economy, not just to the North-east of Scotland, but to the whole of the country."

Mike Rumbles, the Liberal Democrat MSP for West Aberdeenshire and Kincardine, said: "Subocean is an important local employer.

"I would call on the Scottish Government to provide any assistance it can to help Subocean at this time."