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October 1, 2023

MV Werften files for bankruptcy leaving fate of 2000 workforce uncertain

By Priti Naik

The German cruise ship builder MV Werften filed for bankruptcy leaving the fate of 2000 workforce unsure. The bankruptcy comes after the negotiations between the MV Werften and German government failed to reach an agreement over financing a cruise ship. The shipyard was planning on constructing the Global Dream, a “Global class” cruise ship built for Dream Cruises, another Genting Hong Kong subsidiary.

According to reports, the ship builder has a liquidity gap of around $150 million. The government has asked Genting to contribute $62 million in a rescue plan, but Genting, which has invested more than $2 billion in the company since buying it in 2016, says it will contribute around $42 million. Germany’s Federal Minister for Economic Affairs, Robert Habeck, blamed Genting for the insolvency and potential loss of jobs. Like others in the cruise shipping sector, MV Werften and Genting Hong Kong have faced difficulties in the wake of the COVID-19 pandemic and its impact on passenger operations.

The outcome is a devastating blow for the shipbuilding workforce, who, until recently, had seen significant investment in the three shipyard facilities as production was ramped up to meet Genting’s demands.

MV Werften’s most recent delivery, the Crystal Endeavor, world’s largest luxury expedition yacht, took place from the Stralsund yard in June 2021 following a EUR 193 million government loan issued in October 2020. This loan was issued to help fund the remainder of construction and shipyard operations through March 2021.

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