Rescue Plan Emerges for Germany’s FSG and Nobiskrug Shipyards

 

At a press conference on Friday, January 31, at the now closed FSG Shipyard (Flensburger Schiffbau-Gesellschaft) the provisional insolvency administrators announced their rescue plan for the group’s two shipyard groups. They have reached terms for the two divisions to be sold independently of each other but also reported that investor Lars Windhorst continues to oppose the bankruptcy of the shipyard group.

“We have managed to find two renowned strategic investors for FSG and Nobiskrug within the extremely tight time frame of just seven weeks,” said lawyer Christoph Morgen who is the provisional insolvency administrator for FSG. He also oversaw the previous insolvency of the company and the sale of the former MW Werften. According to Morgen, the best outcome has been reached for FSG ensuring the yard will resume work.

The group was forced into bankruptcy in December 2024 by insurance administrators with reports employees had not been paid for weeks. There are also reports of a long list of creditors for the shipyards with many suppliers not having been paid in months. Windhorst had controlled the yards since 2000.

Under the terms of the provisional agreement, the Heinrich R?nner Group from Bremerhaven will acquire the FSG shipyard. The yard has been building Ro/Ro ferries and currently has an incomplete ferry in the yard for Australia’s Searoad. The Australian company is reported to support the deal and has already entered into a contract with R?nner for the completion of the ferry.

R?nner is active in shipbuilding as well as steel construction. The company acquired the Lloyd Werft shipyard in Bremerhaven in 2022 during the insolvency proceedings for Genting Hong Kong and MV Werften.

The fate of the Nobiskrug operation is less clear. Lawyer Hendrick Gittermann is the provision insolvency administrator for the yards which specialize in luxury yacht construction. He reported that a notarized offer had been received from the Lürssen group, another of Germany’s large yacht shipbuilding groups. He reported that under the terms of the agreement, Lürssen would acquire Nobiskrug. Initially, it appears work and employees will be transferred to the neighboring Lürssen-Kr?ger shipyard.

During the press conference, it was highlighted that neither of the shipyards can immediately resume work due to permitting and other considerations. Morgen said the deal would signal the start of investments by the acquirers to restore the operations. 

Employees of the bankrupt companies have agreed to the formation of a transfer company. It is a German system that provides for 80 percent of their historic wages along with retraining. The transfer company will run for four months with 310 employees from FSG and 140 from Nobiskrug. The intent is for them to transfer back to the shipyards.

Morgen reported however that late last night he and the judge overseeing the insolvency received a communication from Lars Windhorst. He reportedly offered to make available €50 million ($52 million) in a trust and would resume his role as managing director of FSG Group and the two shipyard groups.

The administrators said they viewed this as a delaying tactic noting that the insolvency had progressed and could not be stopped. They plan to present the plan to the court on February 1 and begin the insolvency process. Once the court rules, Morgen and Gittermann will have sole authority over the shipyards. They said as early as next week they plan to accept the offers from R?nner and Lürssen.

Government officials hailed the agreements as a good outcome that would preserve jobs and the shipbuilding industry. Prime Minister Daniel Günther of the Schleswig-Holstein state and representatives of the union IG Metall joined in the press conference expressing their support for the deal.

FSG however continues to face a lack of orders to ensure its long-term future. R?nner reported it is already in discussions with Searoad for a second ferry. They said the future emphasis would be on new ship construction contracts but they could also look to diversify such as with the construction of components for offshore wind power.

The two shipyard groups are among the oldest operating in Germany. Flensburger Schiffbau Gesellschaft traces its roots to 1872 while Norbiskrug traces its origins to 1895 and was officially incorporated in 1905. It built commercial ships before taking its first yacht contract in 2000. Today it is recognized as one of the leading builders of luxury yachts.