FSG Shipyards Get Temporary Financing from German State to Continue Work

The bankrupt German shipbuilding group FSG-Nobiskrug Holding received temporary financing to keep the operations open while efforts continue to seek permanent investors. The group had been forced into a contentious insolvency order by the German courts despite assertions from the yard’s owners that they would be refinanced.

Germany’s Federal Minister of Economics, Robert Habeck, accepted an invitation from the union IG Metal and visited the shipyard in Flensburg today, December 23, to discuss the situation and pledge his support in the rescue efforts. While at the shipyard, the minister met with the two provisional insolvency administrators while announcing that the State of Schleswig-Holstein’s Guarantee Bank was providing insolvency funds and loans to keep the operations going.

Christoph Morgen who is acting as the administrator for the FSG yard said the monies would ensure the operating costs are secured till the end of January. He emphasized however that the time is short to find investors for the yards.

The FSG shipyard dates back to 1872 and in recent years has been building RoRo ferries. It went through a prior insolvency in 2020 also overseen by Morgens. Investor Lars Windhorst rescued the yard and combined it with the Nobiskrug yard in Rendsburg which has also been in operation for over 120 years. Since 2000, Nobiskrug has specialized in luxury superyachts.

Morgens said the goal was to continue work on the RoRo being built for SeaRoad while reporting potential investors had visited the yard. He is targeting completing a transaction by February 1 noting that the two yards would likely be separated going to two different investors. He emphasized the potential for naval shipbuilding as well as supporting the offshore wind energy sector.

The Rendsburg location is being overseen by provisional insolvency administrator Hendrik Gittermann. He told reporters that there had been good interest in Nobiskrug Yachts and FSG Nobiskrug Design. He said he was “pleasantly surprised” by the level of inquiries coming from aboard.

The shipyards had faced months of financial troubles with media reports of back pay and overdue bills. An insurance provider was the company that forced the group into the insolvency process. Media reports indicate employees received their November pay and Christmas bonus payment on December 18. 

Minister Habeck stressed the importance of shipbuilding as an industry to Germany and the yards' contribution to the economy in northern Germany. He said he would work personally to help preserve the two yards.

Windhorst at the time of the filing had contended that he was working on refinancing. He said the actions would force a government response while asserting the matter would be resolved quickly.

The reports indicate the intent is to place the two shipyards with private investors that can revitalize the operations. The German government earlier this year stepped in to save the Meyer Werft shipyard in Papenburg. In that case, the German government guaranteed loans and provided capital taking temporary ownership of the company from the Meyer family.   The goal is to transition the Meyer shipyard back to private ownership in the next few years.