Genting-owned German cruise ship shipbuilder MV Werften has been granted around €175 mill of state aid.
The funds were put in place by 17 banks, the German Federal State Government of Mecklenburg-Vorpommern said at the end of last month.
MV Werften ceased production at its shipyards in Wismar, Rostock and Stralsund in late March, due to the coronavirus outbreak. As a result, the shipbuilder faced financial difficulties that could have resulted in bankruptcy without the new capital injection, local sources said.
The company needed interim financing to pay its suppliers by September. In the same month, the shipbuilder is expected to receive another €570 mill in aid to finance the vessels under construction.
The shipbuilder recently applied for the aid, which comes under the German federal COVID-19 rescue package.
Harry Glawe, Mecklenburg-Vorpommern Minister of Economics, Employment and Health, said that with the decision to release the funds to MV Werften, the first milestone had been reached. According to Glawe, this decision was a strong signal to all parties involved in MV Werften and the maritime sector in the state.
He added that the liquidity of the shipyards can now be ensured and invoices from suppliers paid.
Reinhard Meyer, local Finance Minister, said that the decision is the basic requirement for the preservation of many high-quality industrial jobs.