shipbuilding
What will happen to MV Werften? Parent company disputes in court
The Schwerin District Court is examining the admissibility of the eight insolvency applications received for companies belonging to MV Werften. Photo: Jens Büttner / dpa-Zentralbild / dpa
© dpa-infocom GmbH
After the bankruptcy of MV Werften, the parent company Genting tries to save its skins. In court he argues with Mecklenburg-Western Pomerania about a million dollar loan. The shipyard workers also have money worries.
The approximately 1900 employees of the insolvent MV Werften are still waiting for their December wages to be paid out. “We wait every hour for the preliminary insolvency administrator to be announced,” said IG Metall representative Stefan Schad.
Only then can he instruct the wages and salaries. The old management should no longer do this after Monday’s bankruptcy petition. The regular payday for December was last Friday.
However, the Schwerin district court is still examining the admissibility of the eight insolvency applications received for companies of MV Werften, as a court spokesman said. The bankruptcy filings were filed on Monday.
The Hong Kong parent company Genting, which took over MV Werften in 2016, has got into trouble due to the crisis in the cruise industry as a result of the pandemic. One of the world’s largest cruise ships with space for almost 10,000 passengers is moored at the shipyard in Wismar. It’s 75 percent complete. Genting wanted to build it for its own needs in Asia.
On Tuesday, the group and the state of Mecklenburg-Western Pomerania quarreled at an appointment lasting several hours before the Schwerin district court about the disbursement of a 78 million euro (88 million dollar) aid loan to Genting. The court wants to announce its decision next Monday.
Schwerin granted the loan in June 2021 to close a possible later liquidity gap at Genting. When the group applied for the payment in December, however, the state refused, pointing out that Genting had to come to an agreement with the federal government about 600 million euros in financing for MV Werften. Genting’s lawyers asserted that the loan had nothing to do with MV Werften, but was granted to the group. In the loan agreement, there was no mention of an agreement with the federal government on the MV Werften as a payment requirement. The question that remained open was to what extent financial gaps at Genting – 476 million euros were named – could play a role in the payout.
A few hours after the MV Werften filing for bankruptcy on Monday, the state canceled the loan. Genting considers this to be invalid, as the lawyers explained to the regional court.
The group’s shares have been suspended from trading on the Hong Kong Stock Exchange since Friday. It will stay that way for the time being, said Genting, referring in particular to the outcome of the Schwerin court proceedings.
In the announcement, the company spoke of outstanding payments of 336 million US dollars (296 million euros). In addition to the state loan, Genting also includes money that the federal government has awarded the company from the economic stabilization fund. The lack of payments has led to an acute and significant gap in the expected liquid funds. There is therefore no guarantee that the company will be able to meet its financial obligations.
The Genting Group also includes the Bremerhaven-based Lloyd shipyard, which was founded in 1857 and which also went bankrupt. Bremen state politics and the IG Metall union are looking for ways to continue. Economics Senator Kristina Vogt said after a meeting for the approximately 300 employees that the prospect of continued operation depends mainly on the fact that the owner enables a sale to an investor.