Sale of FSG to investment group takes a step forward

L to R: Investor Lars Winhorst, FSG’s Managing Director Martin Hammer and Chairman of the FSG Works Council Thomas Jansen. [Photo: FSG]

A rescuer looks to have been found for troubled German shipbuilder Flensburger Schiffbau Gesellshaft (FSG) in the shape of Lars Windhorst, founder of investment company Tennor Holding. A contract for the sale of the company, one of Europe’s leading RO/RO builders, at an undisclosed price has been notarized, but not yet executed. Meantime, within the scope a reorganization under Germany’s complex insolvency laws, along with FSG business assets, 350 of the yard’s 650 employees have been put on the books of other Tennor Holding’s businesses. They include all 31 trainees and nine students. Hopes are that the remaining 300 employees can be brought back once new orders can be secured.

Currently under construction at the yard are two RO/ROs commissioned by Tennor Holdings. At one time, another German shipbuilder, Pella Sietas, had been seen as a possible buyer for the yard and there are reportedly hopes that there can be future cooperation between the two.

Execution of the contract is still subject to the payment of the sale price and the entry of those employees whose jobs could not be retained into the newly established transfer company. The date for the planned execution of the contract is September 1, 2020.

Dr. Christoph Morgen, specialist and expert in insolvency law, has been appointed provisional trustee by the Flensburg district court, says that “there is still some work to be done before the contract closing date. Meantime, the opening of the insolvency proceedings at the Flensburg district court is planned for August 1, 2020.

“In these difficult times, when there is a lot of upheavel, it is important for me to stand by the FSG and its employees,” says Lars Windhorst. “Unfortunately, it is not possible to retain all jobs at the FSG. But I fundamentally believe in the future of the company, and that is why I am backing the company again, along with Tennor. A difficult restructuring process lies ahead of us. If all those involved stand together, we will get through it.”