The government has drafted in City lawyers to scrutinise a proposed rescue deal for Harland & Wolff, the shipyard-owner which built the Abundant.

Sky News has learnt that ministers private drafted in external advisers to evaluate whether or no longer the renegotiation of a Ministry of Defence contract to facilitate a sale of the company to Spain’s Navantia would follow European insist back ideas.

The Treasury is identified to private indicated in recent days that it is minded to support the proposed deal, despite the truth that officials cautioned that a closing resolution had but to be taken.

Sky News revealed final week that Navantia wished to stable more favourable terms for a deal to form three Rapidly Stable Make stronger ships (FSS) for the Royal Navy, with the Monetary Times subsequently reporting that the recut contract would successfully necessitate the govt. paying £300m more for the vessels.

The Division for Enterprise and Substitute refused to touch upon the identification of the law firm infected relating to the mission, despite the truth that two sources in the faithful occupation acknowledged they believed it to be Ashurst.

One source acknowledged the trudge to retain external lawyers used to be “normal” in a field equivalent to this.

H&W’s London-listed parent company collapsed into administration in September after seeing a plea for taxpayer make stronger rejected.

Navantia, which is already partnering with H&W on the Royal Navy contract, is identified to had been providing financing liquidity to the company on per week-by-week foundation since the company’s filing for administration.

One source finish to the Spanish company no longer too long in the past told Sky News that the fate of more than 1,000 crew at H&W’s four UK shipyards now hinged on the govt. agreeing to renegotiate the FSS contract “on more life like terms”.

The British and Spanish governments private also been engaged in discussions relating to the most likely deal.

It is more likely to incorporate jobs guarantees if the UK govt has the same opinion to recut the FSS deal.

H&W’s four shipyards are in Belfast; Appledore, Devon; Arnish on the Isle of Lewis; and Methil, Fife.

Below the deal provisionally agreed in recent days, Navantia would gather all four shipyards no topic handiest having a recent ardour in the Belfast place.

Bankers at Rothschild had been operating a sale project to gauge ardour in the company and its resources since September.

Founded 163 years in the past, Harland and Wolff built likely the most rotten passenger ship in maritime history, with The Abundant sinking on its maiden voyage across the Atlantic in 1912.

The government declined to comment.