Ferguson Marine Shipyard in Port Glasgow, Scotland, is now set to enter public ownership.
The Scottish Government has announced that it has reached an agreement with administrators to take the Ferguson Marine shipyard in Port Glasgow into public control.
According to government sources, the agreement means two ferries currently under construction at the yard for Caledonian Maritime Assets Ltd (CMAL) will be completed.
A program board has been set up by Scotland's economy secretary Derek Mackay to ensure effective completion of the two ferries being built at Ferguson Marine shipyard.
More jobs could be created at newly nationalized Ferguson Marine in order to complete the two vessels which nearly sank the shipyard, Mackay has announced.
According to local media reports, the yard, which employs 300 staff, had faced closure five years ago, but was saved by SNP economic adviser and billionaire businessman Jim McColl, and then won the GBP97mln public contract to build the two ferries for Caledonian MacBrayne.
However as costs mounted, the Scottish Government loaned £45mln to Ferguson Marine in an attempt to get the ferries completed - money it may now have to write off, the reports say.
However, the future of the yard beyond that still seems uncertain. In order for the Ferguson yard to survive it needs to win more orders, not only for more CalMac ferries but private sector and naval contracts too.