The MV shipyards in Mecklenburg-Western Pomerania are also affected by the parent company’s difficulties.
(Photo: imago images/BildFunkMV)
Berlin The Asian entertainment group Genting has run out of money. A bankruptcy petition was therefore filed with a court in Bermuda on Wednesday, as the company of billionaire Lim Kok Thay announced on Wednesday. The owner of the insolvent MV Werften in Wismar wants to shake off his debt burden in this way and, if possible, remain intact. The German state is also one of the lenders.
As the company announced on the Hong Kong stock exchange, it also submitted proposals to the competent court in Bermuda for the appointment of preliminary insolvency administrators who are to work on a restructuring and negotiate with creditors. A hearing is scheduled to take place on January 20th.
The decision was taken after every effort had been made to negotiate with creditors and shareholders. Trading in the group’s shares has been suspended on the Hong Kong Stock Exchange since Tuesday after the group said it was considering filing for preliminary liquidation.
The preliminary insolvency administrator should start talks with the lenders as soon as possible in order to find an amicable solution. This is in the interests of all parties involved, explained Genting. The group left open the total debt burden.
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The bankruptcy of the group will also hit the German taxpayer. The federal government and the state of Mecklenburg-Western Pomerania had supported the company with a three-digit million loan. The state had thus financially secured the construction of two cruise ships that were to be built at the MV shipyards.
Unanswered questions at the MV shipyards
The state of Mecklenburg-Western Pomerania has been refusing for a month to pay out an aid loan of 78 million euros to Genting that was agreed in the summer. At the beginning of the week, the district court in Schwerin rejected an urgent application from Genting against the state. The group was unable to explain an existential emergency in a comprehensible manner, so the reasoning.
The Asian tourism group, which offers cruises and gambling, among other things, has gotten into trouble as a result of the ongoing corona pandemic. This also affects its subsidiary MV Werften in Mecklenburg-Western Pomerania, where Genting had cruise ships built for its own needs.
It was initially unclear what consequences the application for liquidation by Genting could have for MV Werften and the hoped-for completion of the world’s largest cruise ship “Global Dream”. The manufacture of the ship is largely complete; however, the work is suspended. In addition to the tourism business, Genting operates casinos.
Insolvency was filed for the MV shipyards with around 2,000 employees last Monday. A few days later, on Friday, the preliminary insolvency administrator of MV Werften, Christoph Morgen, spoke to top representatives from Genting, according to his spokesman. The administrator then reported that the atmosphere was good and constructive. Financing solutions will be sought and further talks are planned.
With material from dpa
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