Administrators are today being appointed at the Ferguson Marine shipyard in Port Glasgow ahead of its expected renationalisation by the Scottish Government.
Union leaders representing workers welcomed the news which they said secures the immediate future of the yard.
Scottish finance secretary Derek Mackay last week announced potential plans to nationalise the shipyard after its owners served notice of its intent to put the business into administration.
GMB Scotland organiser, Gary Cook, said: “ Our members were caught in the middle of a situation that had nothing to do with them and their relief will be palpable. It is five years since the yard went bust and the Scottish Government has prevented that from happening again.”
But he stressed nationalisation “will not be a quick-fix and there will be challenges”.
“There will for example be limits to the amount of private sector work for which the yard can compete but the alternative to nationalisation was closure and that was no choice at all.
“Our immediate priority is to secure the re-employment of the workers released last weekend because their skills are essential and then we will insist the government works with us to develop a proper industrial plan for the yard because lessons must be learned.”
The deal ends Jim McColl's involvement with the shipyard . He had previously saved the business in 2014.
The Government has previously loaned Fergusons, which employs 350 people, £45 million after problems arose with a £97 million CalMac contract for new ferries.
