Norwegian ship recycling major takes over Kleven Verft

Norway’s ship recycling firm Green Yard has taken over compatriot Kleven Verft, which filed for bankruptcy early this month after losing a loan deal.

A Kleven spokesperson confirmed to Offshore Energy-Green Marine that the takeover agreement has been reached with the bankruptcy estate and the banks involved.

As disclosed, Green Yard AS has plans to continue the shipyard business, but at the same time plans to expand the core competence to new business areas ‘that can provide a stable supply of work alongside shipbuilding and maintenance.’

“This will make Green Yard Group a complete shipyard group in Norway,” the statement reads.

Kleven’s potential expansion into ship recycling business would provide the much-needed relief for the stretched capacity of environmentally-sound ship recycling facilities compliant with the EU rules.

“We would not have been able to do this without all the employees at Kleven, the banks, creditors, contracting parties, and suppliers who have shown patience and given the estate peace of mind to work out solutions. Hamre is particularly impressed with the employees who have been working in a demanding time with high uncertainty,” said Trustee Bjørn Åge Hamre, a partner in Simonsen Vogt Wiig AS, who has led the negotiations together with a team from Kleven and Simonsen Vogt Wiig.

Management of the Norwegian shipbuilder Kleven Verft AS, and its two subsidiaries Kleven Maritime Contracting AS and Kleven Maritime Technology AS, filed for bankruptcy on July 3.

The initiation of bankruptcy proceedings came after local banks decided to terminate a loan agreement.

Kleven was bought in January this year by Croatian DIV Group, a consortium of maritime and metal processing companies which also acquired the Croatian shipyard Brodosplit in 2013.