FSG looks to revived fortunes

Delayed Honfleur –still at FSG. Its completion is one aim of restructuring.Delayed Honfleur –still at FSG. Its completion is one aim of restructuring.

Troubled German shipyard Flensburger Schiffbau-Gesellschaft (FSG) hopes to resume production in summer now that an application for self-administered insolvency has been approved, writes Tom Todd.

Legal and yard officials met at the yard Sunday April 26th to outline provisional restructuring measures designed to put the yard back on its feet. That followed swift approval of the FSG insolvency application by a Flensburg court on Friday.

The self-administration management team at RoRo and RoPax specialist FSG is being bolstered by restructuring specialists including insolvency administrator Christoph Morgen and a new FSG MD, Martin Hammer.

Hammer said FSG wanted to continue to be the symbol for modern shipbuilding in the region and that things now needed to calm down at FSG so that production could resume when the yard re-opened.

That referred to the suspension of operations and production on March 19th, ostensibly because of the Corona virus pandemic but also after a disastrous year in which  FSG posted a loss of €111 million. Mainly because of delivery delays on the €150 million, 54,975gt Irish Ferries newbuilding W.B.Yeats.

At the time FSG acknowledged “considerable losses” and penalty payments which reports said affected funds earmarked for further completions. The latest blow for the yard has been cancellation in February of a €438 million order from Australia’s TT Line for two LNG/Diesel fuelled passenger ferries. FSG’s work force of some 650 has been on short time for months.

Lars Windhorst, founder of FSG’s current owner Tennor Holding stressed however at Suinday’s insolvency meeting: “We remain committed to FSG. The self-administration team will now work with Tennor to develop a viable concept for the future”. Windhorst said Tennor was also in close and constructive contact with FSG’s former owner Siem, which recently took delivery of its eighth ship from the yard.

 A main aim now, said one official, was to put FSG operations onto a solid financial basis. A first step was to continue building the only ship currently remaining at FSG – the already long-delayed LNG driven RoPax ferry Honfleur for Brittanny Ferries, which is in the outfitting stage.

Costing €195 million, the 42,000gt newbuild, driven by four Wärtsilä DF engines has been described as Europe’s largest LNG cruise ferry.

Source link

Leave A Reply

Your email address will not be published. Required fields are marked *