Germany's P+S Werften Files for Insolvency

P+S Werften’s Volkswerft Stralsund site

German shipbuilder P+S Werften GmbH on Wednesday said it has filed for insolvency with the local court of Stralsund, Germany, after talks with creditors, customers and suppliers broke down.

“In recent days we have explored all options in our attempts to reach a solution,” said RÃ¼diger Fuchs, who has been CEO of P+S WERFTEN since August, 7 2012. “We have provided open and honest information about our problems and tried to prevent insolvency. Now it is clear that it is not possible to reach an out-of-court solution supported by all stakeholder groups.”

In a statement P+S Werften says it is seeking debtor’s self-administration in a bid to keep the available know-how in the company and to continue to build as many ships as possible.

The company owns two sites in Stralsund and Wolgast, in northern Germany, and employs 1,771 people and 116 trainees. P+S Werften said it hopes that the sale of its Peene shipyard in Wolgast will be conducted within a structured investor process.

Danish shipping and logistics company DFDS A/S (DFDS.KO), who has two ro-ro newbuildings on order with P+S Werften, has already expressed concerns over whether or not the vessels on order will be delivered.

Dominic Chopping from Dow Jones contributed to this article.