Genting Hong Kong (GHK) expects court ruling on a dispute over funding on January 17

   January 14, 2022 ,   Accidents

Genting Hong Kong (GHK), whose shipbuilding company MV Werften filed for insolvency earlier this week, expects the court in Germany to publish its ruling on a dispute over funding on January 17.

In a statement, the company said the hearing of the Legal Proceedings had taken place on January 11, 2022, in the Court and the Court had indicated that the ruling would be handed down by the Court on January 17, 2022.

The matter concerns the legal proceedings involving the drawdown of the USD 88 million backstop facility to be provided by Germany's Mecklenburg Vorpommern state in order to address the potential liquidity needs of the group.

German cruise 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 shipyard owner (GHK), which did not reach an agreement over financing for the remaining building of the Global Dream ship.

GHK shares were suspended from trading on the HK Stock Exchange last Friday ahead of the announcement on Monday.

Like others in the cruise shipping industry, MV Werften and GHK have faced difficulties in the wake of the COVID crisis and its impact on travel-related businesses.

MV Werften was formed back in 2016 with GHK’s acquisition of Nordic Yards’ 3 shipyards in German - RostockStralsund, and Wismar. Since 2017, the company has delivered 4x Rhine Class riverboats and the polar-class luxury megayacht Crystal Endeavor for Crystal (also owned by GHK). MV Werften’s biggest facility in Wismar has one of Europe's largest covered building docks/drydocks and is one of a few facilities worldwide capable of building some of the largest cruise ships.

At 208,000 GT liner Global Dream has max passenger capacity 9500, ranking it as one of the world's ever-largest. The vessel's construction is now ~75% completed.