Hamburg shipbuilder J.J. Sietas declares insolvency

J.J. Sietas has joined the long list of shipbuilders forced to file for insolvency under German bankruptcy laws. Hamburg attorney Berthold Brinkmann was appointed Friday as provisional liquidator in the case.

The shipyard has some 700 workers and has five vessels under construction. Hamburg broadcaster NDR quotes Mr. Brinkmann as saying that work on those vessels will continue. The workers’ wages are protected for three months under German law.

The yard’s order book includes the first offshore wind farm installation vessels to be ordered from a German shipyard. That’s seen as a market with a future. And while the yard’s present owners have been unable to secure new investors, it is widely believed that there will be no shortage of buyers keen to acquire a debt-free yard after it has gone through the insolvency process.

November 21, 2011