FLENSBURGER-GESELLSCHAFT GmbH has collapsed into administration for the second time in four years but Tasmania’s SeaRoad Group remains confident it will receive newbuilding ro-ro Searoad 1 on time and on budget.
Late last week the Flensburg and Neumünster district courts initiated insolvency proceedings for four companies in the Schleswig-Holstein shipyard group FSG-Nobiskrug, owned by investor Lars Windhorst’s Tennor Holding.
Ironically it was Mr Windhorst who ‘rescued’ FSG when it last bankrupted, in 2021, a collapse that led TT Line to abandon a contract to build the new Spirit of Tasmania ro-paxes at the yard. TT Line subsequently awarded new contracts to Finland’s Rauma Marine Constructions.
SeaRoad Group’s executive chairman Chas Kelly confirmed the provisional administration and told DCN he has had further discussions with the Administrator and is “comfortable that the ship 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.”
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.
However, like many European newbuildings the ship has been delayed by labour and material shortages. Delivery is now not expected until 1Q 2026.
Meanwhile, Searoad has extended the charter of another FSG-built ro-ro, Liekut,which was originally taken on hire in April 2021 for three years. Liekut is due to go to drydock in Singapore on 22 December.
The companies affected by the latest insolvency are FSG-Nobiskrug Holding GmbH, Flensburger Schiffbau-Gesellschaft mbH, Nobiskrug Yachts GmbH and FSG Nobiskrug Design GmbH with its shipyard sites in Flensburg and Rendsburg.
In Germany the insolvency courts have appointed Dr. Christoph Morgen (law firm Brinkmann & Partner) and Hendrik Gittermann (law firm REIMER) as provisional insolvency administrators. Both experts have commenced their work and are working closely together to develop reorganisation solutions for the shipyard group, according to a statement.
In order to secure the wages and salaries in the short term of the almost 500 employees – around 340 in Flensburg and 140 in Rendsburg – insolvency pre-financing was initiated. It covers wage and salary payments up to and including January 2025 and also includes the outstanding November salaries.
“The provisional insolvency administrators will now contact the clients for the two shipbuilding projects that have already begun at the shipyard sites in Flensburg and Rendsburg. These are a RoRo ferry (FSG) and a superyacht (Nobiskrug).
“If necessary, Dr. Morgen and Mr. Gittermann then want to talk to the federal and state governments about possibilities for support with interim financing of construction costs until acceptance and payment by the clients. At the same time, they will develop further options for restructuring the renowned shipyards.”
Management of FSG and Nobiskrug was restructured in June this year, with Mr Windhorst stepping back from operational management to focus on continuing re-structuring.
