Despite no official communique from the company itself, reports from Germany on Friday (20 April) indicate that Bavaria Yachts has gone into administration.

The company employs over 500 people in Giebelstadt, Bavaria making power and sail yachts up to 57ft long. A separately owned multihull brand, Nautitech, is based in La Rochelle, France and is expected to continue business as usual, according to several reports.

A statement is expected early in the week. </s> Hundreds of jobs have been secured following the announcement that a buyer has been found for Bavaria Yachts

17 September 2018

Bavaria Yachts has been bought by a private equity fund advised by the German investment company CMP Capital Management-Partners.

The move secures 800 jobs in Germany and France.

The yacht builders went into self-administration in April, allowing the firm’s management to remain operational while new investors were sought. This also meant Bavaria could continue to build and deliver 220 yachts during that period.

The private equity fund will also acquire all shares in the French subsidiary Bavaria Catamarans SAS.

‘All 550 employees of BAVARIA YACHTS in Giebelstadt and all 250 employees of BAVARIA CATAMARANS in Rochefort will transfer to the purchaser,’ said Bavaria in a statement.

The purchase will be completed after merger control clearance by the German Federal Cartel Office, which is expected in a couple of weeks. The parties have agreed not to disclose the purchase price.

CMP Capital Management-Partners is a German investment company that has specialised in the acquisition of companies in distress in Germany, Austria and Switzerland since its foundation in 2000.

With the investment in a company, CMP employees assume operative management responsibilities on site. In the case of Bavaria, Dr. Ralph Kudla, restructuring expert and partner at CMP, will join the executive board.

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Commenting, the managing director ofCMP Capital Management-Partners, Kai Brandes, said: ‘We are convinced of Bavaria’s global market potential and will sustainably develop the company. The restructuring measures will focus on regaining market share and improving production costs.’

Restructuring expert Dr. Tobias Brinkmann, managing director of Bavaria Yachtbau since insolvency proceedings began in April 2018, said Bavaria was an ‘outstanding company with a strong brand, compelling products and a highly dedicated team.’

‘We are pleased to have found a well-known and experienced buyer in CMP who will lead Bavaria into the future. The entire management would like to thank our employees, yacht dealers, customers and suppliers,’ he stated.

‘ They have all supported Bavaria Yachtbau during the insolvency proceedings. The fact that Bavaria has been able to successfully build and deliver 220 yachts during the last five months shows how committed and reliable our staff is,’ added Dr Brinkmann

22 May 2018

Bavaria Yachts has announced it is in the process of securing new investment and hopes to make an announcement in July.

The German yacht builder is continuing to take orders and deliver new boats.

‘Production has been stabilised and deliveries are continuing: more than 30 yachts have left the shipyard over the past two weeks and have been handed over to customers,’ said Bavaria in a statement.

‘All 600 employees are on duty, and agreements were reached with all major suppliers for further delivery against short payment terms,’ it added.

Bavaria went into self-administration last month. This allowed the firm’s management to remain operational while new investors are sought.

It only affected operations at Bavaria’s German operations. Nautitech – Bavaria’s catamaran arm – was unaffected.

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The German shipyard said management and administrators have started an ‘investor process’ to rebuild Bavaria Yachts for the future.

‘The objective is to be able to present an investor in July 2018,’ said Bavaria.

The firm, which recently celebrated its 40th anniversary, was sold by its founder, Winfried Herrmann to the private equity group, Bain Capital in June 2007 for around €1.1 billion.

The American investment firms, Oaktree Capital and Anchorage Capital Group then became creditors post financial crisis in 2008.

As part of restructuring, Oaktree and Anchorage waived a substantial majority of their loans and became majority shareholders, investing ‘significant resource’.

‘Unfortunately, Bavaria Yachtbau was unable to recover operational profitability,’ said a spokesman for Oaktree and Anchorage.

As a result, Bavaria went into self-administration, and restructuring expert, Dr Tobias Brinkmann was appointed to find new investors.

‘We are continuing the operation and want to go into the coming order season with a new investor,’ stressed Dr Brinkmann.

‘The first expressions of interest have already been received, and we are also actively approaching potential investors,’ he added.

24 April 2018

Bavaria Yachts has confirmed that is has now gone into self-administration.

The German shipyard said boat production and deliveries will continue until June 2018. Wages and salaries for Bavaria’s 600 workers are also secure until then.

The self-administration, which allows the firm’s management to remain operational while an investor for the company is sought, only affects operations at Bavaria’s German operations.

Nautitech – Bavaria’s catamaran arm – remains unaffected and trading, delivery and after sales service at its base in Rochefort, France continues as normal.

‘In the current situation, we want to supply our customers with the usual high quality, stressed Bavaria’s chief operating officer, Erik Appel.

Dr. Ing. Tobias Brinkmann, specialist lawyer for insolvency law and partner in the law firm Brinkmann & Partner, joins the management team. Bavaria’s previous CEO, Lutz Henkel, left the management board last week.

Bavaria said its ‘top priority is now the search for an investor’

‘We have years of experience building high-quality yachts and are industry leaders in many areas,’ said Appel.

Bavaria said that against the background of a good market positioning, the aim was to ‘put the operation on a sound financial basis’.

Bavaria was founded in 1978 and is considered one of the market leaders in European yacht building. In January, it announced the new flagship C65 as well as the C45 models at Boot Düsseldorf.

Payment of wages and salaries for the months of April to June 2018 will be secured by bankruptcy pre-financing.

In a statement, Nautitech Catamarans, said: ‘To this day, the catamaran business remains in Rochefort France. It is an independent French company with its own employees, suppliers and bank accounts. Seen as the “jewel in the crown” of the Bavaria group, the well managed and profitable catamaran business is already attracting interest from potential buyers.

‘Whilst we understand that both the catamaran division and the struggling German operation will probably soon be under new ownership, or indeed ownerships, the operation of the catamaran business is completely unaffected by the situation in Germany. Therefore trading, delivery and after sales service continue as before.’

20 April 2018

The German yacht building giant Bavaria is expected to issue a statement later today, explaining that it is entering administration.

It is thought that the administration will apply to the Bavaria monohulls, but not to Bavaria catamarans. The company, which announced the new flagship C65 as well as the C45 models at Boot Düsseldorf earlier this year, is expected to continue construction and delivery of all current orders and will not be closing its factory. </s> Home Sector Shipyards Sungdong Shipbuilding officially placed under court receivership April 23rd, 2018 Jason Jiang Asia, Shipyards

South Korea’s Changwon District Court has officially put financially trouble shipyard Sungdong Shipbuilding under receivership on Friday.

According to the court, auditor Deloitte Anjin will carry out due diligence on to determine the company’s value of liquidation and its going concern value.

The court decision follows Seoul ruling in March that Sungdong Shipbuilding will file for court receivership and chang its business to focus on ship repair and possibly block building.

Sungdong, which was founded in 2003 and had grown to be a reputable mid-sized shipyard in South Korea, started having financial difficulties in 2010 after the global financial crisis. After surviving on government subsidies for 8 years, the government finally decided to have the bankruptcy court take over the shipyard.

Another major South Korean shipbuilding STX got its self-rescue plan accepted by creditors, which withdrew a plan to place the shipyard under court receivership. </s> BELFAST'S historic Harland and Wolff shipyard is being placed into administration today as 130 employees are given redundancy notices.

The shipyard, which is where the Titanic was built between 1909 and 1911, has been struggling in recent years due to stiff competition from abroad.

It is understood that the iconic firm, which once employed 30,000 people will file for insolvency tomorrow at the High Court in Belfast.

The company’s Norwegian owner, Dolphin Drilling, filed for bankruptcy in June and put the Belfast shipyard up for sale.

The company’s yellow cranes – named Samson and Goliath – dominate Belfast’s skyline but the workforce at the yard has declined from a peak of more than 35,000 in the 1920s to only 130 - as Northern Ireland’s shipbuilding industry has all but disappeared.

The yard, which now focuses on repair work on ships and oil rigs as well as wind turbines, made a loss of £5.8m (€6.3m) in 2016 – the last year for which it filed accounts – compared with a profit of £1.1m (€1.2) in 2015.

A spokesman for Harland and Wolff who confirmed the news today said: “There has been a series of board meetings, the result of which is that administrators will be appointed over the course of the day.”

It is understood that trade unions representing the firm's employees met with administrators today arguing that it is cheaper for the government to keep the shipyard open.

An employee who has been with Harland and Wolff for the last 37 years said the company is a crucial part of the city's history.

Robert Walker said: "I’ve worked for this company for 37 years now and it’s absolutely in my blood. It’s in my blood; it’s in Belfast’s DNA. This city was built around this company. It would be a terrible shame for us to lose it." </s> BELFAST — The Belfast shipyard that built the Titanic, Harland and Wolff, will be placed into administration, a form of bankruptcy protection, on Monday, a spokesman for the firm said.

“There has been a series of board meetings the result of which is that administrators will be appointed over the course of the day,” the spokesman said. </s> BERLIN — Irish budget airline Ryanair has filed a complaint with European Union competition authorities after Air Berlin filed for bankruptcy protection and then got a 150 million euro ($177 million) government loan to stay afloat.

Ryanair said late Tuesday there’s “an obvious conspiracy” between the German government, Lufthansa and Air Berlin. The loan will help Air Berlin to keep flights running for the next three months, while it is negotiating a possible deal with No. 1 German airline Lufthansa and another unnamed carrier.

Air Berlin filed for bankruptcy protection Tuesday after its main shareholder, Abu Dhabi-based Etihad, said it would make no more financing available following years of unsuccessful turnaround attempts. </s> BERLIN (Reuters) - German holiday airline Germania collapsed on Tuesday after it failed to secure financing to meet a short-term cash squeeze and said it would cancel all flights immediately.

The insolvency of Germania, which carried around 4 million passengers each year, follows on from the failure of Germany’s second-biggest airline, Air Berlin, in 2017, and underscores the turbulence in the European airlines industry.

Britain’s Monarch Airlines and Alitalia have also filed for insolvency in recent years.

Germania, founded in 1986, blamed rising fuel prices, a stronger dollar, delays in integrating new aircraft into its fleet as well as a high number of maintenance services for the cash shortage.

“Unfortunately, we were ultimately unable to bring our financing efforts to cover a short-term liquidity need to a positive conclusion,” Chief Executive Karsten Balke said in a statement.

Germania’s 37 aircraft mainly flew German sun-seekers to more than 60 destinations in Europe, North Africa and the Middle East. It said all flights had been halted overnight after it filed for bankruptcy late on Monday.

Balke thanked the airline’s staff and apologized to passengers who had booked directly with the airline who it said would not be entitled to alternative flights.

“The horror for German air travelers continues,” said Klaus Mueller, head of the Federation of German Consumer Organisations.

The Federal Association of the German Aviation Industry said airlines, including those belonging to the Lufthansa Group, TUIfly and Condor, would offer stranded Germania passengers special rates to return to Germany.

Europe’s largest budget airline Ryanair, which posted its first quarterly loss since 2014 on Monday, said it expected further consolidation in the industry over the next 12-18 months due to overcapacity.

It predicted a further rise in oil prices would put the squeeze on smaller airlines that can’t afford to increase their oil price hedging.

Germania’s own financial problems emerged at the start of January when it said it was examining several financing options to secure its short-term liquidity needs.

It said on Jan. 19 it had received a commitment for 15 million euros ($17 million) in funding that would secure its medium and long-term future, but at the end of last week it confirmed media reports that it had delayed paying wages.

Air Berlin, which served around 30 million passengers a year filed for insolvency in 2017 and ceased operations. Many of its aircraft were absorbed by bigger rival Lufthansa.($1 = 0.8763 euros) </s> German holiday airline Germania collapsed on Tuesday after it failed to secure financing to meet a short-term cash squeeze and said it would cancel all flights immediately.

The insolvency of Germania, which carried around 4 million passengers each year, follows on from the failure of Germany's second-biggest airline, Air Berlin, in 2017, and underscores the turbulence in the European airlines industry.

The Berlin-based airline, which carried more than 4 million passengers a year on scheduled and chartered short- and medium-haul flights, blamed factors such as an increase in fuel prices last summer.

The decision came less than a month after Germania confirmed that it was in financial difficulty following what it called a "particularly challenging year" for the aviation industry. Last week, it said it hadn't yet been able to pay its employees for January.

The airline said its insolvency filing, made Monday in a Berlin court, doesn't affect two operations in other countries: Germania Flug AG in Switzerland and Bulgarian Eagle. Together with those two units, Germania operated 37 aircraft.

In its statement announcing the end of operations, the company pointed to "massive increases in fuel prices last summer and the simultaneous weakening of the euro against the U.S. dollar" as well as "considerable delays in phasing aircraft into the fleet and an unusually high number of maintenance events."

Germania said that passengers who booked flights as part of a package vacation can contact their tour operator to arrange alternative transport, but those who booked directly with the airline aren't entitled to a substitute flight.

The airline had operated since 1987. In 2016, it launched a drive to expand its fleet that saw it order 25 Airbus A320neo jets with an option for 15 more.

Germania's insolvency follows the demise in 2017 of Air Berlin, which was Germany's second-biggest airline.

Air Berlin went under after its main shareholder, Abu Dhabi-based Etihad, said it would not make any more financing available following years of unsuccessful turnaround attempts. Germany's biggest airline, Lufthansa, and budget carrier easyJet bought parts of the airline.

Lufthansa said Tuesday that it would offer discounted tickets for passengers who booked with Germania to and from Germany through the end of February. </s> Berlin — Holiday airline Germania collapsed on Tuesday, succumbing to wider sectoral woes after failing to secure financing to navigate a short-term cash squeeze, cancelling all flights immediately.

The insolvency of the German company, which carried 4-million passengers a year, follows the failure of Germany’s second-biggest carrier, Air Berlin, in 2017 and underscores the turbulence in the European airline industry.

Britain’s Monarch Airlines and Alitalia also filed for insolvency in 2017, with German charter carrier Small Planet Airlines hitting financial trouble last year after an expansion drive.

Germania, founded in 1986, blamed its cash shortage on rising fuel prices, a stronger dollar, delays in integrating new aircraft into its fleet and high maintenance costs.

“Unfortunately, we were ultimately unable to bring our financing efforts to cover a short-term liquidity need to a positive conclusion,” CEO Karsten Balke said.

The carrier’s 37 aircraft mainly flew German sun-seekers to more than 60 destinations in Europe, North Africa and the Middle East. The Berlin-based company also offered flights to less conventional destinations, including Iran, Iraq and Armenia.

It said all flights had been halted overnight after it filed for bankruptcy late on Monday. A spokesperson for the airline’s administrators said it was unclear whether operations could resume and whether the company could continue.

Balke thanked Germania’s staff and apologised to passengers who had booked directly with the airline and would not be entitled to alternative flights. A Germania spokesperson declined to comment on the number of passengers or staff affected.

“I have no idea whether we are going to be put on another flight or whether we can book our own new flight through another carrier. No idea,” passenger Iris Fenske said at Düsseldorf airport.

The Federal Association of the German Aviation Industry said other airlines, including Condor, Tui Group’s TUIfly and those belonging to the Lufthansa Group, would offer stranded Germania passengers special rates to return to Germany.

Tour operators will organise alternative travel arrangements for holidaymakers who have booked package deals, the German Travel Association said.

Germany economy minister Peter Altmaier said he had no specific plans to offer help to Germania, adding that the government would watch the situation closely.

“The horror for German air travellers continues,” Klaus Mueller, head of the Federation of German Consumer Organisations, said of the airline’s demise.

Europe’s largest budget airline Ryanair, which on Monday posted its first quarterly loss since 2014, said it expects further consolidation in the industry over the next 12-18 months because of overcapacity. It predicted a further rise in oil prices would put the squeeze on smaller airlines that cannot afford to increase their oil price hedging.

In a video message on Twitter, Ryanair COO Peter Bellew on Tuesday said the airline will offer Germania pilots, engineers and cabin crew immediate starts if they apply for vacancies in Germany, Austria and across Europe.

Germania’s financial problems emerged at the start of January when it said it was examining several financing options to secure its short-term liquidity requirements. It said on January 19 that it had received a commitment for €15m in funding that would secure its medium- and long-term future, but at the end of last week it confirmed media reports that it had delayed paying wages. 

Reuters
German manufacturer Bavaria Yachtbau is expected to collapse into administration.