Ship boat

Cruise ship builder MV Werften files for bankruptcy in Germany – Reports

German cruise ship builder MV Werften filed for bankruptcy on Monday, leaving the fate of the shipyard and its 2,000 employees uncertain, according to reports.

The bankruptcy comes after negotiations between the German government and shipyard owner Genting Hong Kong failed to reach an agreement on financing the remainder of the construction of the Global Dream, a cruise ship ” world class ”under construction for Dream Cruises, another Genting Hong Kong subsidiary.

German Federal Minister of Economic Affairs Robert Habeck blamed Genting for the insolvency and the potential loss of jobs, according to reports in German media.

Genting Hong Kong shares were suspended from trading on the Hong Kong Stock Exchange on Friday ahead of Monday’s announcement.

Like others in the cruise industry, MV Werften and Genting Hong Kong have struggled in the wake of the COVID-19 pandemic and its impact on passenger operations.

MV Werften was formed in 2016 with the acquisition by Genting Hong Kong of the three Nordic Yards shipyards in Wismar, Rostock-Warnemünde and Stralsund, Germany. Since 2017, the shipbuilder has delivered four Rhine-class river cruises and one polar-class luxury expedition “yacht” for Crystal Cruises, also a Genting Hong Kong company. MV Werften’s largest facility in Wismar has one of the largest covered construction docks in Europe and is one of the few facilities in the world capable of building some of the world’s largest cruise ships.

With 208,000 GT and 342 meters in length, the Global Dream is expected to be able to accommodate up to 9,500 passengers at peak times, making it one of the largest cruise ships in the world. Construction of the ship took place at the Rostock and Wismar shipyards, where it would be approximately 75% complete.

The most recent delivery of the MV Werften, the Crystal Endeavor, the world’s largest luxury expedition yacht, took place from the Stralsund shipyard in June 2021 following a government loan of 193 million euros issued in October 2020 to help fund the remainder of construction and shipyard operations through March 2021..