German courts launch insolvency proceedings against troubled shipyard group

Two district courts in Germany have begun insolvency proceedings on behalf of four companies under the umbrella of the FSG-Nobiskrug shipbuilding group.

Insolvency proceedings for FSG-Nobiskrug Holding, Flensburger Schiffbau-Gesellschaft, Nobiskrug Yachts, and FSG Nobiskrug Design are underway at the Flensburg and Neumünster district courts, which have also appointed two provisional insolvency administrators.

Insolvency pre-financing was initiated to secure short-term wage and salary payments for nearly 500 employees of the group, which is concentrated in Schleswig-Holstein, up to January of next year. Many of these 500 employees have already been laid off, according to German local media.

The provisional administrators have also begun discussions with clients that have vessels currently under construction at the FSG-Nobiskrug Group's facilities in Flensburg and Rendsburg. The administrators are also considering the possibility of collaborating with the federal and state governments to support the construction costs via interim financing.

The companies under the FSG-Nobiskrug Group filed for insolvency, with financial instability and alleged mismanagement as factors in the filing.

Lars Windhorst, owner of FSG-Nobiskrug parent company the Tennor Group, has vowed to contest the insolvency proceedings despite calls for him to resign from employees, local unions, and even politicians.