Shipbuilding: MV shipyard owner Genting is considering filing for bankruptcy

shipbuilding
MV shipyard owner Genting is considering filing for bankruptcy

The owner of the insolvent MV shipyards, Genting Hong Kong, is considering filing for bankruptcy.

“In light of the financial position of the group – if the company does not receive credible offers for a solvent, amicable and mutually conditional reorganization solution – the board may submit a preliminary liquidation of the company to the competent court in Bermuda,” it said in a message to the company Investors in Hong Kong on Tuesday.

The day before, the district court in Schwerin had rejected Genting’s urgent application for payment of a loan from the state of Mecklenburg-Western Pomerania. The group was not able to sufficiently demonstrate that it was in an existential situation without the payment of the 78 million euros ($88 million), the judge said. In order to obtain an injunction before the decision on the main issue, such an existential emergency must exist.

The country had granted Genting Hong Kong the loan in order to close a liquidity gap at the group that was forecast for 2024/2025. However, Genting reported the need for payment in December 2021 because there was already a gaping liquidity gap. The country refused to pay out the loan – partly on the grounds that the future of MV Werften was not secured. Last Monday, Genting then filed for bankruptcy for the MV shipyards.

In addition to the court decision, Genting also cited other attempts to raise short-term funds on Tuesday, including an $81 million cash reserve that was also part of the Global One cruise ship’s financing agreement. “So far, none of the banks involved has agreed to a payout,” the company said.

It also said four of the board members had resigned as independent non-executive directors. Reasons for this were not given, but there are no disagreements with the board.

dpa