Status: 10.01.2022 6:38 p.m.
The MV-Werften filed for bankruptcy on Monday afternoon. Until recently, the federal government, the state and the owner Genting Hong Kong had tried to negotiate a rescue package. Almost 2,000 employees are now facing an uncertain future. Prime Minister Manuela Schwesig (SPD) spoke of “bitter news” for the whole country. Federal Minister of Economics Robert Habeck (Greens) blamed Genting for the failure of the negotiations.
“A bitter day for all of us, but we have to face this fact,” said the management’s statement. The insolvency was applied for at noon at the Schwerin district court, as the court confirmed. In talks between the federal government, the state of Mecklenburg-Western Pomerania and the owner Genting from Hong Kong, no solution for further financing was found, said a shipyard spokesman. However, bankruptcy does not have to mean the final end – that could also mean that it will continue.
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Tough struggle to the end
As the spokesman further explained, Federal Economics Minister Habeck and Mecklenburg-Western Pomerania’s Prime Minister Schwesig tried to find a way out on Friday. That did not succeed. The shipyard owner Genting Hong Kong had recently put pressure on the federal government and the state during the negotiations. Genting appealed to the federal and state governments to reconsider their negative attitude towards the release of funds for the completion of the more than 340 meter long cruise ship “Global 1”. The federal and state governments, on the other hand, had demanded a higher financial contribution from the company in order to save the shipyards.
Cruise giant almost finished
At peak times around 3,000 people worked at MV Werften, at last it was just under 2,000.
The MV-Werften did not succeed in securing the financing of the approximately 75 percent finished and approximately 1.5 billion euro expensive new cruise ship building. It is considered to be one of the largest cruise ships ever built and was intended exclusively for the Asian market. According to reports, the federal government had repeatedly assured that it wanted to provide around 600 million euros from the Economic Stabilization Fund (WSF). The ship should be used as security for this. The owners’ own contribution was a contribution of 60 million euros plus guarantees for the federal funds in question. Genting, however, had only promised 30 million euros and is said to have recently offered a further eleven million euros, according to the “Ostsee-Zeitung”. The President of Genting Hong Kong, Colin Au, said in Wismar on Sunday that four offers for further funding had been submitted to the federal government. However, these have all been rejected. Mecklenburg-Western Pomerania’s Finance Minister Reinhard Meyer (SPD) said on Monday evening that the required 60 million euros had “not nearly” been reached.
Schwesig: “Bitter news for the whole country”
“We very much regret that Genting has decided to file for bankruptcy,” said Schwesig in the evening. This is “bitter news” for the whole country. The cause of the bankruptcy lies in the corona pandemic. “We were and we are convinced that cruise tourism has a future,” said the Prime Minister. Schwesig criticized Genting’s behavior during the negotiations as “incomprehensible.” Genting should have made a substantial contribution, had promised it, but has now filed for bankruptcy instead. Schwesig announced that the state government wants to ask the state parliament for a special session this week. Visits to the locations together with the insolvency administrator are also planned.
Habeck: Shipyard owners turned down the federal government’s offer of aid
Federal Minister of Economics Habeck sees the blame for the bankruptcy on the owner. “As the federal government, we have pulled out all the stops to avoid the bankruptcy of MV Werften and thus save jobs. However, the owners have turned down our offer of help; the result is the filing of bankruptcy.” This is “bitter news” for the employees of the shipyard and the region. The IG Metall coast spoke of a “black day” for shipbuilding in Germany. “We are appalled that it had to come to this point. That the negotiations did not lead to a solution is sobering. The trust on all sides seems to have finally been used up,” said District Manager Daniel Friedrich in the afternoon. Now it has to be about prospects for employees and locations in Bremerhaven and Mecklenburg-Western Pomerania.
Maritime coordinator: “No meeting between the federal government and Genting”
The maritime coordinator of the federal government, Claudia Müller, said in the afternoon that there had been “no meeting between Genting and the federal government”. On the other hand, they had agreed with the country. There are clear rules for the Economic Stabilization Fund (WSF). Actually, the owner’s contribution is 20 percent, in the case of Genting it was reduced to 10 percent. It is now a matter of developing good prospects for the shipyards in Mecklenburg-Western Pomerania and Germany. “It is important that we keep the know-how.” There is great potential in the offshore industry, said Müller. The AfD, as the largest opposition faction in the state parliament, accused the state government of “delaying state bankruptcy” in the case of MV Werften.
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“It’s stressful, but we’re looking ahead”
The almost 2,000 shipyard employees on the Baltic coast are now facing an uncertain future. “The mood is sad,” said a shipyard worker to an NDR reporter when leaving the shipyard in Wismar at noon. “It’s not really surprising. It’s stressful, but we’re looking ahead. What the heck,” said another. The head of the general works council, Ines Scheel, put it more dratically: “I feel like shit. Of course we are frustrated that a common solution has not yet been found.” Frustration also prevails among the employees, they fought until the last day. Hopes were now directed towards a quick solution for the December salaries and the possibility of being able to continue building the ship, said Scheel.
The MV Werften announced last Friday that the wages could not be paid – a clear indication that the company had run out of money. In addition, many jobs at suppliers depend on the shipyards. The employees must first apply for insolvency loss money from the employment agency. Much could then depend on a possible insolvency administrator and how he wants to continue the company.
Economics minister criticizes “Black Peter game”
Economics Minister Meyer spoke of a bluff game in the struggle for the shipyards. He emphasized on Sunday that it was in the interests of the state government, the employees and the shipbuilding industry to preserve the shipyard locations. It is also possible that the shipyards’ lawsuit against the country has hardened the fronts. The shipyards demanded the payment of 78 million euros. This was agreed in 2021, should Genting reach a certain liquidity threshold, it said. However, the Schwerin regional court assumed last week that the Group’s current liquidity problems could not be resolved in this way. The court date scheduled for Tuesday (January 11th) should, according to reports, continue to exist.
Shipyards were the “industrial heart of the country”
An insolvency of the shipyards is a severe blow for Mecklenburg-Western Pomerania as a business location. Prime Minister Schwesig had repeatedly referred to the shipyards as the “industrial heart of the country”. The shipyards in Wismar, Rostock and Stralsund have belonged to the listed Hong Kong-based gaming and cruise company Genting since 2016. The collapse of the cruise business in the Corona crisis had brought the parent company into financial difficulties.
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