Juan Kelly News

Shares in Cammell Laird fell nearly nine percent on Thursday after news the British shipbuilder's $500 million contract with U.S. firm Luxus was at risk, threatening a second blow to the yard in as many months. Since it began a dispute with Costa Classica -- an Italian unit of U.S group Carnival Corp. -- last Autumn over a key cruise ship contract, which was subsequently terminated, its shares have fallen dramatically from a year high of 147p. While the Costa Classica dispute raged on -- leading to 450 job losses and an expected impact on year results -- the company was hopeful that the Luxus contract would provide bedrock work throughout the group for the next three years.

Cammell Laird's $500 million contract with U.S. firm Luxus could fail unless loan guarantees are received from the British government by the end of February. "It's urgent. I'd like to think it (loan guarantee approval) was certainly this month," Juan Kelly said. Kelly said he had written to British Trade and Industry Secretary Stephen Byers to urge the speedy approval of loan guarantees for Luxus, which has ordered two luxury liners from Cammell Laird. Without the guarantees, Luxus, which is a start-up company, may not get bank loans to fund the orders, sources at Cammell Laird said recently. The guarantees could cover some 60 percent of the value of the contract.