Two long-established German shipyards, Flensburger Schiffbau-Gesellschaft (FSG) and Nobiskrug, have filed for insolvency amid ongoing financial difficulties faced by their parent company, Tennor Group, and its owner, Lars Windhorst.District courts in Flensburg and Neumünster have appointed lawyers Christoph Morgen of Brinkmann & Partner and Hendrik Gittermann of REIMER as provisional insolvency administrators. These filings follow months of instability and reported mismanagement, during which the shipyards struggled to meet operational costs and payroll obligations.On Monday, Schleswig-Holstein’s public utility provider threatened to cut off power at the Rendsburg facility after unpaid bills dating back to December 1. The shutdown was temporarily postponed because a federal police vessel remained at the yard for repairs.The financial collapse has affected around 500 employees at both facilities, leaving many uncertain about their future before the holiday season. Some have already lost their jobs. At a recent rally in Flensburg, workers’ union representatives claimed delayed salary payments, including outstanding November wages and Christmas bonuses. Jan Brandt, chairman of the Flensburg Works Council, accused Windhorst of repeated dishonesty and unkept promises regarding timely compensation.In recent months, workers, unions, and political figures have criticized Windhorst, citing poor management and lack of transparency. Schleswig-Holstein’s Economics Minister, Claus Ruhe Madsen, urged Windhorst to assume responsibility and consider selling the shipyards. With insolvency proceedings now underway, new investors may have the opportunity to restructure operations and stabilize the workforce.Tennor Group took over FSG in 2019 and rebranded it as “FSG 2.0,” but failed to secure the orders needed to ensure long-term viability. In 2021, FSG acquired Nobiskrug following the latter’s own insolvency proceedings, though this acquisition did not resolve ongoing financial problems. During summer 2024, the federal government withdrew a €62 million grant intended for LNG bunker ship construction at FSG, citing insufficient equity from Tennor.The provisional insolvency administrators are now working to resolve existing projects, including a RoRo ferry at FSG and a yacht at Nobiskrug. They may seek interim financing from federal and state governments until clients accept completed projects and provide payment. Insolvency pre-financing has been arranged to secure compensation for approximately 340 employees in Flensburg and 140 in Rendsburg through January 2025, covering overdue November salaries.Local officials and industry observers have suggested that FSG should pivot to manufacturing components for offshore wind energy projects to meet growing market demand. Others have recommended that Nobiskrug broaden its portfolio to include commercial vessels. With new ownership and strategic adjustments, the shipyards may still find opportunities to recover and rebuild their reputations in the maritime industry.German shipyard Nobiskrug was founded in 1905. Recognised today as one of the world’s foremost builders of spectacular fully custom superyachts, the shipyard is famous for the 92m Tatoosh, the award-winning 68m Sycara V, the 74m Mogambo, the 143m industry-changing Sailing Yacht A, and the environmentally innovative 80m Artefact.Credits: Nobiskrug
December 16, 2024