FSG’s insolvency proceedings to start

2020-07-27T15:19:26+00:00 July 27th, 2020|Finance|

The Flensburg District Court is to open insolvency proceedings concerning Flensburger Schiffbau-Gesellschaft mbH (FSG) on 1st August, according to the ro-ro shipbuilder in an update.

FSG filed for the opening of insolvency proceedings at Flensburg’s local court in April. The court approved the application, allowing the company’s management to remain in control while the company tried to restructure financially, according to local reports.

Recent ropax cancellations hit the yard’s finances, among which was Brittany Ferries refusal to continue with the building of the LNG-powered ropax ‘Honfleur’, which has been under construction at the yard since 2017 (pictured) (see also TT-Line story).

However, FSG has managed to ensure the construction continues with the support from its creditors, the yard reportedly said.

In addition, FSG’s management has resumed negotiations with Pella Sietas to possibly purchase the yard.


“As the outcome of these consultations cannot yet be predicted, FSG is, at this point in time, unable to say whether and how many jobs can be saved. The workforce has been informed about this today in staff meetings,” FSG said in a recent statement. “We are currently setting up a transfer company and will draw up knowledge and competence profiles together with all employees as part of their individual potential analysis.”

Hamburg-based Pella Sietas was formed in 2014 after the Russian Pella Group took over the struggling German shipbuilder, Sietas Shipyard.