Germany accuses Malaysian owner of shipyard bankruptcy

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BERLIN (AP) – Germany attributes the collapse of a shipyard business to its Malaysian-based owner Genting Group, saying the conglomerate has refused to help with a government bailout.

The MV Werften shipyard in northeastern Germany, which Genting bought in 2016, filed for bankruptcy on Monday after experiencing financial difficulties over the construction of a massive cruise liner.

The German government had previously said it was prepared to discuss a € 600 million ($ 678 million) bailout that would protect 1,900 jobs.

But German officials have made it clear they want Genting, who is majority owned by Malaysian billionaire Lim Kok Thay, to contribute at least 10% to the rescue effort.

“The German government has done everything to prevent the insolvency of MV Werften and thereby save jobs,” Economy Minister Robert Habeck told German news agency dpa. “However, the owners rejected our offer of help; the application for bankruptcy is the result.

Habeck called it “bitter news” for employees in the economically depressed state of Mecklenburg-Western Pomerania.

Dpa quoted him as saying that the federal and state governments would continue to discuss the future of the shipyard in the coming weeks.

Genting Hong Kong, part of the Genting Group and immediate owner of the shipyard, has battled the effects of the coronavirus pandemic on its shipping business.

The company’s financial woes also triggered the bankruptcy on Monday of another shipyard it owns in Germany, Lloyd-Werft in Bremerhaven.

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