The companies Windhorst Shipyards FSG and Nobiskrug have filed for bankruptcy.

Struggling Shipyards FSG and Nobiskrug Seek Financial Relief Through Insolvency Proceedings

Insolvency proceedings have been initiated for the shipyards FSG in Flensburg and Nobiskrug in Rendsburg, controlled by investor Lars Windhorst. The regional courts of Flensburg and Neumünster have appointed attorneys Christoph Morgen and Hendrik Gittermann as interim administrators, as confirmed by spokespersons.

At present, both administrators, along with their teams, are evaluating the financial status of the shipbuilding companies operating under the FSG-Nobiskrug Holding umbrella.

Subsequent to staff meetings at both shipyards, the interim insolvency administrators, works council representatives, and the IG Metall in Flensburg will convene to discuss the situation. Schleswig-Holstein's Minister of Economics, Claus Ruhe Madsen, is also expected to participate in this assembly.

Power supply threat

Both shipyards fall under the purview of Windhorst's Tennor Group. Financial challenges have plagued FSG and Nobiskrug for some time, with late salary payments being a persistent issue. Recently, around 500 employees at both locations were yet to receive their November salaries and Christmas bonuses. At one point, almost the entire workforce was temporarily laid off.

The utility company Stadtwerke SH threatened to disconnect the power supply at the Rendsburg site on Monday due to the absence of a power supply contract since December 1. However, this action was postponed because a federal police ship was still undergoing repairs in the dock until Tuesday, according to the utility company's announcement.

The shipyard's 150-year legacy of FSG includes multiple instances of bankruptcy. Still, a rescuer has emerged each time to prevent its collapse. In 2014, the Norwegian shipping and offshore conglomerate Siem Industries bought FSG from a Munich investor.

Insolvency proceedings in 2020

In 2018, the yard reported a net loss of 111 million euros on revenue of 213 million euros, according to the annual report of the Norwegian conglomerate Siem Industries at the time. In early 2019, investor Windhorst intervened, with his investment company Tennor acquiring the ailing yard later that year.

In the spring of 2020, an insolvency application was necessary due to a failed ship deal. On September 1, 2020, several companies belonging to Tennor took over the yard and 350 of the then approximately 600 employees. Windhorst had laid the groundwork for the "FSG 2.0" revival, as it began without old debts and liabilities. However, it also began without orders.

Just over a year later, FSG acquired the insolvent, renowned superyacht builder Nobiskrug in Rendsburg. New orders that Windhorst had repeatedly promised were scarce. Currently, FSG has only one project in progress. In the summer, the German government withdrew a 62 million euro subsidy for the construction of liquefied gas bunkering ships at FSG. The promised equity capital to secure orders was not provided. At the time, an FSG spokesperson denied the claim, asserting that Tennor had not provided the necessary evidence of available equity capital.

Windhorst has been subjected to numerous criticisms for his behavior, empty promises, and poor communication. Just last month, the Schleswig-Holstein state parliament called for new investors. Minister of Economics Madsen and also Minister President Daniel Günther had repeatedly demanded Windhorst's departure. Even an insolvency wouldn't come as a surprise, Günther said in Flensburg last month. That doesn't mean it's the end. "Perhaps it could also mean a new opportunity."

Despite the ongoing financial issues, including late salary payments and the threat of power supply disconnection, the economy of both FSG and Nobiskrug shipyards is under scrutiny during the insolvency proceedings. The interim administrators are evaluating the financial status of both companies under FSG-Nobiskrug Holding to determine a path forward.

The current economic situation of the shipyards has also affected their workforce, with around 500 employees yet to receive their November salaries and Christmas bonuses, and a temporary layoff of almost the entire workforce at one point.