MV Werften files for bankruptcy

With production sites in Wismar, Rostock and Stralsund, MV Werften currently employs around 1,900 people. Many other jobs at suppliers and other companies depend on the shipyards.

Concerns for Genting-owned MV Werften grew on Friday after staff were told their December salaries would not be paid until next week. Talks about further funding from the federal government and the state government of Mecklenburg-Western Pomerania at the weekend remained fruitless.

Trading in shares of Genting HK was suspended last Friday 7th January pending the publication of an announcement.

series of subsidies

On Sunday, Genting HK Deputy General Manager, Colin Au (and one of the managing directors of MV Werften) and managing director Carsten J. Haake called on the federal government to agree to further grants.

On the other hand, the federal government demanded that Genting make a contribution €60m to pave the way for further subsidies.

According to various reports, Genting was willing to contribute in between €30 and 41m, but wasn’t ready to do everything €60m demand.

Insolvency could enable restructuring

Insolvency – in the sense of German commercial law – does not necessarily mean the end of a company and the loss of all jobs. Rather, it aims to enable the continued existence of the company and the start of a protected restructuring of the operative business.

As part of the insolvency proceedings, employees receive payments from the Federal Employment Agency for a maximum of three months.

It remains to be seen whether insolvency proceedings can help MV Werften to make a better start. In the past few days, ideas about possibilities beyond cruise ship construction have been circulating. Among other things, Nordic Yards expressed an interest in expanding its activities in the region with the production of components for offshore wind farms and ship repair.

This possibility can be particularly relevant for the Stralsund shipyard.