Fife offshore manufacturer BiFab faces a lawsuit over alleged failed payments to a German firm.
Crisis-hit BiFab, which narrowly dodged administration in November, is being sued by German pipe manufacturer EEW over “substantial outstanding payments”.
On Wednesday morning, rumours were circulating that an out of court settlement may have been reached between the two companies, which are both subcontractors for the £2.6 billion Beatrice Offshore Windfarm in the Moray Firth.
But a spokeswoman for EEW later confirmed legal action had been taken and proceedings were ongoing.
BiFab was contacted for comment but did not respond.
It is the latest set-back to hit the Fife-based company, which has yards in Methil, Burntisland and Arnish.
As news of cash flow problems surfaced in November, workers stayed on without the guarantee of being paid and marched to the Scottish Parliament to demand action to save the firm.
The Scottish Government stepped in and offered a £15 million loan to keep the yards going long enough to complete work on subsea jackets for the Beatrice project.
But BiFab still faces a battle for survival with the current contract set to run out in March and nothing in the order book.
GMB organiser Alan Ritchie said: “What we’re determined to do is to keep the yards open in Fife.
“Keeping the yards open means there are job opportunities for every youngster who wants to develop skills. That’s got to be there for the community and we’re committed as a trade union to make sure that it is.”
Kirkcaldy and Cowdenbeath MP Lesley Laird said the legal challenge was “disappointing, perhaps not unexpected.”
She added: “But that should not detract from the key priority – securing the future, not just of the yard, but the high-level skills and capability and identifying a pipeline of future orders.
“Only this week I contacted BiFab and the trade unions to find out the latest position given that the rescue deal was due to be reviewed again in the early part of this year.
“I would expect that dialogue has been on going and am looking to find out what has been agreed.
“This is an important industry not just for Fife but for Scotland’s future ambitions in this market.”
A Scottish Government spokesperson said: “After helping BiFab to avoid the threat of administration, the Scottish Government has been in regular contact with the company, investors and relevant parties to ensure a strong, sustainable future for BiFab and the people it employs.
“The Scottish Government and our agencies are working with the management team at BiFab to secure new business and investment in the company, and through this we hope to provide the best means of creating and safeguarding jobs for the longer term for communities in both Fife and the Isle of Lewis.”
