German cruise ship builder MV Werften files for bankruptcy

   January 11, 2022 ,   Accidents

German shipbuilder MV Werften filed for bankruptcy on Monday, January 10, leaving the fate of the yard and its ~2000 employees uncertain.

The bankruptcy comes following negotiations between the government of Germany and the owner of the shipyard, GHK-Genting Hong Kong, which did not reach an agreement over financing for the remaining building of Global Dream (Global Class vessels).

According to reports in German media, Robert Habeck, Germany’s Federal Minister for Economic Affairs, blamed GHK for the insolvency and potential loss of jobs.

Shares of Genting were suspended from trading on the HK Stock Exchange on Friday ahead of the announcement on Monday.

Like others in the cruise industry sector, MV Werften and GHK have faced difficulties in the wake of the COVID crisis and its impact on guest operations.

MV Werften was formed back in 2016 with Genting’s acquisition of Nordic Yards’ 3 shipyards in Germany - Rostock-Warnemunde, Stralsund, and Wismar. Since 2017, the cruise shipbuilder has delivered 4 Rhine Class riverboats and the polar-class expedition megayacht Crystal Endeavor for Crystal Cruises (also a GHK-owned company). MV Werften’s biggest facility in Wismar has one of the largest covered building docks in Europe and is one of a few facilities worldwide capable of building some of the largest cruise ships.

At volume 208,000 GT-tons and LOA length 342 m, Global Dream is expected to have max capacity 9500 passengers, ranking it as one of the highest-capacity liners in the world. Construction of the vessel is reportedly ~75% completed.

The most recent delivery of MV Werften, Crystal Endeavor, took place from the Stralsund shipyard in June last year following a EUR 193M government loan issued in October 2020 in order to help fund the remainder of building and shipyard operations through March 2021.