Thursday, August 30, 2012

German Shipbuilder P+S Files For Insolvency


Thu., August 30, 2012

German shipbuilder P+S Werften has filed for insolvency, a court in Stralsund, northern Germany said on Wednesday, after P+S came away without a deal with some of its customers for advance payments to bridge a liquidity shortfall, Reuters reported. The company, which operates two of Germany's biggest shipyards, had last week approached Danish shipper DFDS , passenger ferry operator Scandlines and Greenland's Royal Arctic Line, to ask for advance payments as it worked on a rescue plan. P+S employs around 2,000 people. Scandlines and DFDS said on Wednesday they were waiting for further information. Scandlines had previously rejected media reports it was not prepared to negotiate, saying it was interested in a quick resolution to the problems at P+S to ensure delivery of its two ferries on order. The global shipbuilding industry has been suffering from a slump in demand for sea freight and an oversupply of container ships ordered before the global economic crisis. European shipyards have also been hurt by competition from China and Korea. In Germany, deliveries dropped by more than half to 2 billion euros ($2.51 billion) last year. The most prominent victim was Hamburg-based Sietas, the country's oldest shipyard, which filed for insolvency in November, crushed by its debt. P+S was created in 2010 through the merger of German shipbuilding companies Volkswerft Stralsund GmbH and Peene Werft GmbH. It makes vessels including container ships, fishing vessels, river cruise boats and passenger ferries.

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