FS Shipping Limited (09712922): administration
- Status
- Administration ended
- Administration began
- 2017-09-01
- Administrators
- Michael John Magnay, Daniel Francis Butters
- Administrators' firm
- Deloitte
- Incorporated
- 2015-07-31
- Location
- Birmingham
- Industry
- 50200 Sea and coastal freight water transport
Why it went into administration
- Funding withdrawn / unable to refinance
- Property / lease costs
- Sustained trading losses
- Competition / price pressure
From the administrators' statement
The Company had been experiencing challenging trading conditions throughout 2016 and 2017 asa consequence of the prolonged downturn in the oi! and gas sector, suppressed demand for PSVs and the resultant erosion in charter day rates. It had struggled to competitively tender for contracts at charter day rate levels that would provide the necessary profit margins.
In response, the directors took proactive steps to reduce the cost base, including laying up three of the Company’s four PSVs. With securing long-term viable contracts continuing to prove a challenge and more recently no existing live contracts, the Company’s cash position deteriorated over the months leading up to the administration and as a result, the directors took the decision to lay up the remaining vessel, resulting in the immediate cessation of trade. Thereafter the Directors resolved that the Company would need to file for administration.
Steps taken to remedy/turnaround
Administrators' statement of proposals (2017-11-09) · Companies House register