After being forced to file for bankruptcy in June following a number of ferry contract cancellations, Norwegian boatbuilder Brødrene Aa has expanded its activities to ensure continued operations in both Eikefjord and Hyen.
Brødrene Aa Eiendom has established the new company Eikefjord Slipp, which has purchased the operating assets at the shipyard in Eikefjord and taken over ownership of Eikefjord Elektro. Together, the two companies will continue their operations in the areas of passenger vessel conversion and maintenance.
Brødrene Aa said that, at the same time, an agreement has been signed with local transport company Fjord1 to complete the two conversion projects currently underway at the shipyard in Eikefjord.
"This is a very positive development, and we are pleased to be able to create new activity and secure jobs in Eikefjord," said Gustav Johan Nydal, Chairman of the Board of Brødrene Aa and advisor to Brødrene Aa Eiendom.
Negotiations are also underway with investors to establish a new operating company to continue Brødrene Aa's new vessel construction activities in Hyen. The company said the work is being done in close cooperation with the owners and the bank, and a detailed business plan is now being prepared as a basis for purchasing operating assets and restarting production.
Brødrene Aa expects operations at the Hyen facility to commence in August.
"We are experiencing great interest from investors, and many have already visited and expressed great enthusiasm for both the company and the products," added Nydal. "We hope to be able to welcome many of the former employees back as we get started."
Around 170 of the company's employees needed to be laid off after negotations with lenders and other parties had failed to yield a solution that would ensure continued operations.