PROVISIONAL insolvency administrators for Flensburger Schiffbau Gesellschaft, the collapsed German shipyard building Searoad Shipping’s new Bass Strait ro-ro, say they have received several offers from potential new investors.

FSG and sister yard Werft Nobiskrug, both owned by Lars Windhorst’s Tennor Holding, were placed into administration on 12 December 2024 when the Flensburg and Neumünster district courts initiated insolvency proceedings for four companies in the FSG-Windhorst group.

European industry media now reports Dr Christoph Morgen and Hendrik Gittermann used the opportunity of a visit by Schleswig-Holstein’s Prime Minister, Daniel Guenther, and State Minister of Economic Affairs, Claus Ruhe Madsen, to a staff meeting at the invitation of the workers’ union IG Metall Rendsburg, to disclose industry-related companies from Germany, rather than financial investors, were interested parties.

“Negotiations with interested parties are well advanced. This applies equally to the Rendsburg and Flensburg sites,” Mr Gittermann said. However, a complete and immediate resumption of production at the beginning of February, and then under new management, is said to be unrealistic.

At the time of the insolvency Searoad Group executive chairman Chas Kelly told DCN he was “comfortable that the ship [Searoad 1] will be built within our budget estimates. 

“FSG have confirmed they have the labour and expertise to achieve this outcome,” Mr Kelly said. 

“SeaRoad are looking forward to working with the administrator and confident of the delivery of the vessel which will further strengthen our position on Bass Strait.”

SeaRoad Group executives are reported to be in Europe holding discussions with relevant parties, with Dr Morgen saying work on Searoad 1 will resume next month if possible: “The interest and cooperation shown by the shipping company are very encouraging and promising.”

Insolvency proceedings for the companies in the shipyard group are expected to be opened on 1 February, after temporary finance, arranged pre-insolvency, runs out.

To avoid an otherwise inevitable closure of the business, all employees would have to transfer to a transfer company for a period of up to four months from that date. There they will receive 80% of their previous net wages.

“The aim is to enable as many people as possible to continue to work at the shipyards as soon as possible, as soon as suitable solutions are found,” Dr. Morgen said. The decision on  the “investor solution” must be made by the opening of the insolvency proceedings.

The provisional insolvency administrators are also talking to the state government of Schleswig-Holstein about possible interim financing.

When DCN last reached Mr Kelly, around 10 days ago, he said “we are slowly getting a plan together which will see us sorted.”

FSG delivered SeaRoad Shipping’s hitherto newest vessel, the LNG-fuelled Searoad Mersey II, in December 2016 and the company’s satisfaction with that ship led to the second order, for a larger and improved version, being placed in September 2021. At that time the estimated cost was in excess of €100 million ($161 million at that time) and delivery expected in late 2023. The keel was laid on 27 February 2023.

Mr Kelly said SeaRoad now doesn’t expect delivery until 2027.