German court to rule in row over funding for cruise shipbuilder MV Werften -Breaking
[ad_1]
© Reuters. General view of the shipbuilding area at Wismar. This is the Wismar site of the MVWerften shipyards that file for insolvency. Wismar (Germany), January 11, 2022. REUTERS/Annegret HilseBERLIN, (Reuters) – A German court will hear a Genting Group lawsuit against a German region government. The case was brought after a dispute regarding funding of cruise shipbuilder MV Werften. Genting Group had filed for insolvency Monday.
Genting, a Malaysian tycoon Tan Sri Lim Kok Thay’s company, purchased MV Werften back in 2016. This pandemic has affected the entire global travel industry including cruise operators. It also led to production stopping at cruise shipbuilders.
Genting’s subsidiary Genting Hong Kong said on Tuesday the German government and the German federal state of Mecklenburg-Vorpommern had withheld a total $336 million in funding it was promised.
Included in that was an $88 million backstop facility from Mecklenburg-Vorpommern that the Hong Kong group said it was due to draw down, but said that the German state imposed additional pre-conditions in December.
According to the German government, Genting Hong Kong turned down assistance that was offered.
The regional court of Schwerin in northern Germany heard Genting’s case on Tuesday. The court spokeswoman said that a decision will be made Monday afternoon at noon local (1300 GMT)
Genting Hong Kong said Tuesday in a Hong Kong stock trade filing that MV was insolvent and had defaulted under its Global 1 credit facility. This would then lead to more defaults on funding arrangements in the amount of $2.8 billion.
Since Friday, shares in Genting Hong Kong were halted from trading. According to Genting Hong Kong, they will continue being suspended indefinitely pending an announcement that would address the results of legal proceedings.
MV Werften currently has around 2,000 workers in Germany’s northern state of Mecklenburg-Vorpommern.
Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.
[ad_2]
