A company formed just over two years ago to buy an Aberdeen shipping business out of administration has itself collapsed, it emerged yesterday.
Michael Magnay and Dan Butters of business advisory giant Deloitte were appointed joint administrators of FS Shipping, which in 2015 acquired Fletcher Shipping, on September 1.
FS Shipping specialised in the charter and supply of supply vessels for the offshore oil & gas and renewable-energy sectors. It owned and operated four vessels but had no employees. Mr Magnay said: “As a consequence of the prolonged downturn in the oil and gas sector, suppressed demand for vessels and the resultant erosion in charter day rates, the company’s cash position had deteriorated over recent months.
“The directors had taken proactive steps to reduce the cost base, including laying up three of the company’s four vessels.
“But with securing long-term viable contracts continuing to prove a challenge, the directors have reluctantly taken the decision to lay up the remaining vessel, the FS Pegasus, resulting in the immediate cessation of trade.”
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