Norwegian shipbuilder Brødrene Aa has filed for bankruptcy in the wake of financial difficulties related to the cancellation of contracts for three new ferries by local transport operator Norled.
Brødrene Aa said it had worked towards ensuring its continued operations. However, the company admitted that extensive discussions between the parties involved had failed to yield a viable solution, and that 170 employees will be laid off.
The notice of foreclosure has already been submitted to a local court, which will designate trustees to manage the company and its operations.
The three ferries ordered by Norled were originally slated for deployment in the Trondheimsfjord and were scheduled to be delivered in 2024. The first ferry among the three has already been put up for sale while the other two vessels still need to be completed.
Norled's Trondheimsfjord route will be temporarily served by diesel-powered ferries until viable replacement vessels become available.
Brødrene Aa was working towards finding new buyers for the second and third ferries in the weeks before it filed for bankruptcy.
Although not a requirement of the original contract with Norled, Brødrene Aa had intended to equip the three ferries with swappable batteries.
Norled Head of Communications Cathrine Gjertsen clarified, however, that the cancellation was due to delays in the vessels' delivery as well as issues with their operating performance and not because of any work related to the batteries.
Gjertsen had earlier told Norwegian media that Norled has not seen any effort on the part of the builder to resolve the vessels' performance issues, particularly their inability to, "achieve the necessary speed."