P+S becomes latest German shipbuilder to file for insolvency

fuchs filing NDR screen-grabAUGUST 29, 2012 — In a move that casts a shadow over the opening of next week's SMM event in Hamburg, P+S Werften CEO Rüdiger Fuchs walked into Stralsund district court today to make P+S  the latest in the long line of German shipbuilders filing for insolvency. P+S was forced to make the filing despite having a relatively full order book.

The move came within days of German Federal Chancellor announcing that there would be no more federal aid to help tide the shipbuilder over as it attempted to negotiate a restructuring plan. Now, reports broadcaster NDR, the yards' employees will  receive three months net wages. What happens after that depends on the court and whoever is appointed insolvency administrator

Today, the company issued this statement:

"In recent days we have been involved in intensive discussions with the representatives of the German Federal State of Mecklenburg-Western Pomerania and the German Federal Government, and with our customers, suppliers, employees, the trade union IG Metall Küste and with banks to find a way towards an economic future for P+S WERFTEN. We thank all parties involved for their cooperation.

"Rüdiger Fuchs, CEO of P+S WERFTEN since 7 August 2012: 'In recent days we have explored all options in our attempts to reach a solution. We have provided open and honest information about our problems and tried to prevent insolvency. Now it is clear that it is not possible to reach an out-of-court solution supported by all stakeholder groups.' For this reason, the management of P+S WERFTEN GmbH has filed for insolvency today before the insolvency court of the local court of Stralsund.

"P+S WERFTEN is seeking debtor's self-administration in a bid to keep the available know-how in the company and to continue to build as many ships on our order books as possible. It is hoped that the sale of the Peene shipyard in Wolgast will occur within a structured investor process. Management has already informed the works council of the application for insolvency. Works meetings will be held at both shipyards today. P+S WERFTEN in Stralsund and Wolgast currently employs 1,771 people. There are also 116 trainees. As soon as the insolvency court has informed us of its decision we will make a further announcement."

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