Germany: MV Werften File for Insolvency

MV Werften in crisis – Shortly before the completion of construction work on the new cruise ship “Global Dream”, which is expected to have a total volume of around 1.5 billion euros and with a length of 342 meters is to be one of the largest cruise ships ever built in the world, the future of the group of companies, which operates shipyards at sites in Wismar, Rostock and Stralsund, is at a tipping point. Acquired in 2016 by the listed conglomerate Genting Hong Kong (which also owns the cruise brands Star Cruises, Crystal Cruises and Dream Cruises), the shipyards company has run into financial difficulties.

Since the start of the Covid-19 pandemic in March 2020, around 300 million euros in the form of liquidity support, bridging funds and loans have already been provided by KfW, the German federal and state governments to save the MV Werften. After the owner had already reduced the workforce by around a third at the beginning of 2021, now nearly 2,000 jobs in Mecklenburg-West Pomerania are at risk again, as MV Werften filed for insolvency yesterday. Talks between the federal government, the state of Mecklenburg-West Pomerania and the owner have failed to find a solution for further financing, according to reports. Federal Economics Minister Robert Habeck blames the owner for the insolvency. “As the federal government, we have pulled out all the stops to avoid the insolvency of the MV Werften and thus save jobs. However, the owners have rejected our offer of help; filing for insolvency is the result.” A special meeting was held yesterday afternoon to discuss prospects for employees and the sites. So far, it is unclear how the future looks like for MV Werften. (eap)