Insolvency Administrators Confident in Sale of FSG Shipyards

The provision insolvency administrators for Germany’s FSG and Nobiskrug shipbuilders told government officials and union leaders they remain confident in the efforts to save the financially troubled yards. Meeting on Friday, January 17 at the Nobiskrug shipyard in Rendsburg, Prime Minister Daniel Günther told reporters the state was willing to help in order to save the nearly 500 jobs at the two yards.

Insolvency hearings commenced against the group in December and are scheduled to proceed to court at the beginning of February. In addition, the provisional administrators told government officials that interim financing would run out by the end of January. While they remain confident, they now believe there will be an interruption of work at both yards.

The proposal put forward to the union calls for a transfer company to be established with the workers given the option of moving to this typically German arrangement until deals can be completed for the sale of the shipyards. The proposal calls for the workers to receive 80 percent of their wages with the purpose of the transfer company being to aid in training and transitioning to new permanent positions. According to media reports, while the shipyards are likely to find buyers, not all the workers will continue to have jobs even when work resumes in the spring.

Lawyers Christoph Morgen and Hendrik Gittermann were provisionally appointed by the court in December and each is handling one of the shipyards. During the meeting on Friday, they said several potential buyers had expressed interest but it is down to one potential buyer for each yard. The potential buyers are said to be from within the industry as opposed to investors.

The yards were brought under a single company three years ago by the current owner, investor Lars Windhorst, who is reported to now be playing only a minor role in the efforts to save the companies. Previously, Windhorst had rejected the insolvency claims and said he would refinance the companies. Media reports say he is no longer blocking the sale efforts.

Morgen reports that Australian shipowner SeaRoad which has a ferry under construction at FSG has expressed interest in negotiating with the potential buyer of the yard. Morgen hopes work could resume on the ferry in February. Nobiskrug builds luxury yachts with reports that there are several unfinished hulls in the shops. The buyer for this operation hopes to resume work by the spring.

Both administrators report there is much work to be done. They said the accounting at the yards is lacking creating concerns among buyers who are trying to understand the full depth of the financial problems. 

The state has said once the yards are on a sound financial footing it would be willing to guarantee loans. The Prime Minister along with the Economics Minister Claus Ruhe Madsen expressed interest in maintaining the operations. Günther highlighted potential opportunities for offshore converter construction for wind farms on the North and Baltic Seas as well as naval shipbuilding for the yards. 

The company’s works councils and union IG Metall participated in the meeting on Friday. They are anxious to find a solution to maintain their jobs. The union has also called on the state to intervene to provide protections for the workers.