ABSTRACT
This chapter explains the story of how the emerging losses were incurred and how the Industrial Reorganisation Corporation (IRC) was involved in devising and implementing a scheme to enable the group to survive them. For much of 1969, Cammell Laird's (CL's) management was exercised by the fate of another company, Handley Page (HP). Indeed, early in 1969, CL and HP came jointly to ask the IRC if a scheme to support HP could be arranged. The IRC decided not to become involved with HP, but its executive did take the opportunity to look at the CL group. CL's problems in the mid-1960s had been caused partly by the disastrous 'who drills the hole' labour dispute in its Birkenhead shipyard. CL's auditors considered a number of possible courses of action, including the liquidation of the shipyard. Moreover, there was a £3 million debenture which was charged against assets, including the shipyard.
