Pella Sietas GmbH faces charges over filing for insolvency delay

Pella’s Germany based shipbuilding company may face criminal indictment

Pella Sietas Werft (CEO Herbert Tsaturov), a Germany based shipbuilding facility of Pella Shipyard faces charges over delaying bankruptcy proceedings, the bankruptcy manager Dr. Achim Arendt told the Abendblatt.

A few months ago, the German shipyard Pella Sietas Werft canceled its operations due to insolvency. Since May 2021, many of the 300 shipyard workers have not received benefits. Only on July 31 the shipbuilding company's management filed for insolvency with the Hamburg District Court, Dr. Achim Arendt said.

“For us, there is no doubt that the bankruptcy was delayed. Currently, we are figuring out how much earlier it was necessary to submit the documents,” he said.

If it is proved that the insolvency was delayed, this will entail criminal indictment, Dr. Achim Arendt emphasized. The Hamburg prosecutor's office declined to comment. The violation of insolvency laws could result in three years' imprisonment and a fine.

Dr Achim Arendt intends to seek reimbursement in the framework of German civil law.

“We will be filing liability claims. It is not yet clear how much,” he added.

According to the newspaper, Mr Herbert Tsaturov turned over the operating business in Hamburg to his director Natalia Din. It was not possible to contact her immediately, the Abendblatt newspaper said.

In addition to back pay, there are also outstanding obligations to components suppliers. According to the bankruptcy administrator, the creditors' claims currently amount to EUR 30 million.

The shipyard was building a dredger, which was transferred for completion to the Blohm+Voss shipyard, as well as an icebreaker ordered by Rosmorport.

In 2019 Rosmorport signed a contract with Leningrad Pella Shipyard worth RUB 7.54 billion for an icebreaking class vessel. The icebreaking vessel was ordered for the Far East branch with delivery scheduled for 2024. Pella Sietas Werft at the end of October 2020 held a keel-laying ceremony for the icebreaker. PortNews sources familiar with the matter expressed doubts about the timely completion of this project by the German shipyard due to the company's financial difficulties.

According to PortNews sources, USC’ Vyborg Shipyard, which was awarded a similar order this autumn (18MW Icebreaker 7 class), may get this icebreaker contract for completion.