The court denied Genting’s motion for an injunction. The group was not able to sufficiently demonstrate that without the payment of the 78 million euros it would find itself in an existential emergency, said the judge. In order to obtain an injunction before the decision on the main issue, such an existential emergency must exist. With the conclusion of the urgent procedure, Genting is therefore left empty-handed. However, the decision in the main matter still has to be awaited, but both sides can still appeal to the Higher Regional Court. It is not yet clear whether Genting will appeal the court decision. A legal representative of the group did not comment on the media immediately after the hearing. At a court hearing last Tuesday, Genting referred to the existence of a valid loan agreement and insisted on payment.
Genting refers to the contract from June 2021
The group, which owns the insolvent MV shipyards, had sued the country for the immediate payment of 78 million euros shortly before Christmas. Genting refers to a contract from last June, in which the country had undertaken to pay the ailing group a loan if it ran into financial difficulties as part of its restructuring. Auditors had predicted a possible financial gap for 2024 – but this gap appeared last December.
Court had stopped payment to Genting
Genting wanted to enforce the claim to the 78 million euros and was right in an initial decision shortly after Christmas. However, after the country’s objection, the court stopped the payment. The country explained that the situation at Genting had deteriorated significantly and that it was not certain whether the loan could be repaid. The group’s lawyers, on the other hand, refer to collateral. In addition, the country must comply with the applicable treaties and not simply shirk its responsibilities because it does not fit the political line.
Finance Minister Heiko Geue (SPD) explained that unlike the MV shipyards, Genting had not filed for bankruptcy, and the group was apparently not dependent on state aid.