$600 million rescue package for the German shipbuilder MV Werften

   February 23, 2021 ,   Cruise Industry

Urgent talks are currently underway between MV Werften and its owners Genting Hong Kong (GHK) with the German federal and state government for additional rescue funds to maintain work at the financially troubled group.

The negotiations for the rescue package valued at EUR 495 million (~USD 600M) are centered on maintaining the cruise ship construction projects at MV Werften's 3 shipyards in Germany's Mecklenburg-Vorpommern State (RostockStralsund, Wismar), and also include discussions of reducing the workforce by ~1/3.

There is talk of closing Bremerhaven's Lloyd Werft Shipyard, also owned by MV Werften.

Port of Bremerhaven (Bremen, Germany)

In October 2020, Mecklenburg-Vorpommern and federal authorities offered an initial bridge loan from WSF (Germany's Federal Economic Stabilization Fund) valued at EUR 188 million (USD 228M) to cover ongoing operating costs such as employees' wages and salaries at the shipyard sites. The bridge loan was put in place in order to secure the operations for a few months until an economic assessment could be done.

According to Mecklenburg-Vorpommern's Ministry of Economics, at the beginning of 2021, MV Werften received another USD 65M to save the operation from insolvency.