The German shipyard businesses of Genting Hong Kong – MV Werften and Lloyd Werft – have filed for insolvency.
The news comes after Genting Hong Kong – the parent of Star Cruises, Dream Cruises and Crystal Cruises – suspended trading in its shares on the Hong Kong stock exchange.
In a filing to the Hong Kong stock exchange, the company outlined financial support measures from German authorities which it believes it is entitled to, but said it “considers that it has exhausted all reasonable efforts to negotiate with the relevant counterparties under its financing arrangements”.
It added: “If the group remains unable to meet its obligations to repay any debts as they fall due or to agree with its relevant creditors on the renewal or extension of its borrowings or any related alternative arrangements, there may be a material adverse effect on the group’s business, prospects, financial condition and operating results.
“The board is currently in discussion with its bankers, its shareholder partner in Dream Cruises Holding Limited, an indirect non-wholly owned subsidiary of the company, and its professional advisers to evaluate options available to the group.”
Travel Weekly in the US said Germany is blaming the collapse of MV Werften on Genting, saying the conglomerate refused to contribute to a €600 million government bailout plan to protect 1,900 jobs.
German officials wanted Genting, which is majority-owned by Malaysian billionaire Lim Kok Thay, to contribute at least 10% to the rescue effort, the report added.
In June 2021, Crystal Expedition Cruises’ luxury expedition ship, Crystal Endeavor, was christened at the MV Werften shipyard.
MV Werften is also building Dream Cruises’ Global Dream for the Asian market.