Financial investor Lars Windhorst has agreed to a takeover of struggling German shipyard Flensburger Schiffbau-Gesellschaft (FSG).
Companies belonging to his Tennor Holding are expected to order a brace of ro-ro vessels in a late reprieve for the insolvent German shipbuilder.
The sales contract is expected to be completed on 1 September. It will provide work for more than half the yard's workforce.
"We are looking towards the future and will do everything to ensure that the process of building the two ro-ro ships commissioned by Tennor is successful and to win further bids for the shipyard," FSG managing director Martin Hammer said.
Positive signs
"The signs from the industry are positive, because the shipping companies are aware of the high quality of our ships."
Under the agreement, FSG will retain about 350 of its 650 staff, including 31 trainees and nine students.
The remaining 300 will move to a transfer company on 1 August.
Lars Windhorst, founder of Tennor Holding, said: "In these difficult times, when there is a lot of upheaval, it is important for me to stand by the FSG and its employees.
"Unfortunately, it is not possible to retain all jobs at the FSG. But I fundamentally believe in the future of the company, and that is why I am backing the company again, along with Tennor.
"A difficult restructuring process lies ahead of us. If all those involved stand together, we will get through it."
Self-administration
FSG applied for self-administration in April after experiencing delays to its orders.
The yard was placed in debtor-in-possession management under the oversight of an insolvency monitor.
But in the past five days many unexpected things had taken place, said Thomas Jansen, chairman of the FSG Works Council.
He said two ships to be commissioned by Windhorst in the near future will enable the shipyard to continue operating in the short term.
The move marks a radical turnaround in fortune for a shipyard that lost all its orders since filing for insolvency in April.
The shipbuilder has since seen all remaining vessel contracts cancelled.
In June, creditors made an offer to FSG's unnamed lender to complete a $223m LNG-fuelled ropax cancelled earlier that month by Brittany Ferries.
The 42,400-gt Honfleur, which had been due for delivery in June, was FSG's last contract.
However, FSG has said the ship will not be ready for another 11 or 12 months.
Also in June, Irish Continental Group cancelled another ropax on order at the yard. The 67,300-gt ferry had been due in September.
In February, Australia's TT-Line, the Tasmanian state-owned ferry operator, cancelled a deal for two 48,000-gt ropaxes at FSG, switching it to Rauma Marine Constructions in Finland.
The company said the move was made because of FSG's delays in the building of other ships and uncertainty over its finances.
Cooperation
The rescue deal has raised the prospect that FSG may complete projects with Russian owned compatriot shipbuilder Pella Sietas.
"It is clear that Germany's shipbuilding industry is in turmoil. In future, there will be greater cooperation between shipyards, for the purposes of pooling resources," FSG general authorised representative Stefan Denkhaus said.
"Right now it is important to ensure the shipyard's finances are sound and to acquire new contracts, thereby enabling FSG to help shape this radically changing market."
The insolvency proceeding are scheduled to begin at the Flensburg district court on 1 August.
FSG will be assisted by insolvency specialist Christoph Morgen.
"It is good that the shipyard is being modernised and will continue operating," Morgen said.
"What's crucial now is that the newly announced contracts are promptly awarded and that financing for construction of the ships is secured."
