Genting-owned shipyards in Germany file for bankruptcy protection

BERLIN (AP) — Two shipbuilding companies in Germany owned by Malaysia-based Genting Group, MV Werften and Lloyd Werft, filed for bankruptcy protection on Monday.

MV Werften recently delivered the Crystal Endeavor luxury expedition ship and is slated to build Crystal Cruises’ new Diamond class ocean ships.

MV Werften also is constructing the Global Dream, Dream Cruises’ 2,500-cabin mega-ship due to be delivered this year. The Global Dream, being built for the Asian market, will be able to accommodate more than 9,000 passengers.

Genting owns Crystal Cruises and Dream Cruises as well as the MV Werften and Lloyd Werft shipbuilding companies. The Lloyd Werft yard is focused on building luxury yachts and upgrading cruise ship interiors.

Germany is blaming the collapse of MV Werften on Genting, saying the conglomerate refused to contribute to a government bailout plan.

The German government had earlier said it was willing to discuss a 600 million euro ($678 million) bailout plan that would protect 1,900 jobs at MV Werften. German officials made clear that they wanted Genting, which is majority-owned by Malaysian billionaire Lim Kok Thay, to contribute at least 10% to the rescue effort.

“The German government did everything to prevent the insolvency of MV Werften and thereby save jobs,” economy minister Robert Habeck told German news agency dpa. “However, the owners rejected our offer of help; the bankruptcy application is the result.”

Habeck called it “bitter news” for those employees in the economically depressed state of Mecklenburg-Western Pomerania.

Dpa quoted him saying that the federal and state governments would continue to discuss the shipyard’s future in the coming weeks.

Genting Hong Kong, part of Genting Group and the shipyard’s immediate owner, has struggled with the effects of the coronavirus pandemic on its shipping businesses.

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