Wadan orderbook at risk

Customers of Wadan Yards in Rostock-Warnemünde and Wismar have used the shipyard’s insolvency to cancel containership orders. Wadan Yards filed for bankruptcy on June 5. At the time the company had 12 ships worth ?801m in its orderbooks: two ro-pax ferries for Swedish ferry operator Stena Line, two icebreaking 587 teu containerships and eight ordinary containerships of 1,700 teu-2,800 teu.

“The orderbook mainly consists of the two ropax ferries,” said Rüdiger Klein of labour union IG Metall Küste. Hamburg-based Gebrüder Winter refused to take over two already finished containerships because of financial problems. Another client, Hamburg-based shipowner F. Laeisz, used a clause in it contract to walk away from an order for two containerships when the yards filed for insolvency. “The bankruptcy was a welcome reason to fall back on these clauses,” said Klein.

STX Europe also backed away from its promise to take over another four containerships. But Stena Lines confirmed its order, as did Royal Arctic Line, which ordered the icebreaking containerships.

To date, none of the current shipbuilding projects is fully financed, said insolvency administrator Marc Odebrecht. “The Wadan Yards have no secure orders and no cash.”

Negotiations with banks about the financing of four ships, among them the two ro-pax ferries, give reason to hope, Odebrecht said. The talks had so far been constructive and result orientated. However, the 2,500 employees face a difficult situation as there is only enough work for half the workforce, Odebrecht said.

In Rostock-Warnemünde the employment situation will be close to zero at the end of August if no new orders emerge. In Wismar, there will be work until the beginning of 2010. Since the end of 2008, when Wadan Yards failed to raise bank loans, the shipyards have struggled with financial problems and received a considerable amount of government aid. After the refusal of the owners to inject more money into the yards and their inability to produce promised newbuilding orders, the government refused further funding.