Court: MV does not have to pay Genting a million-dollar loan for the time being

Status: 01/17/2022 2:42 p.m

The state of Mecklenburg-Western Pomerania does not have to pay the parent company of the insolvent MV shipyards, Genting Hong Kong, a loan of 78 million euros for the time being. That was decided by the district court of Schwerin on Monday afternoon. The reason given was that it was not clear whether the Genting group was actually in an emergency.

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.

Further information

Does the state of Mecklenburg-Western Pomerania have to pay a loan of 78 million euros to the Genting group in Hong Kong? Both sides argued about this at the Schwerin district court. more

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.

Further information

Wismar: Workers from external companies leave the shipbuilding hall of the MV shipyards, where the cruise ship is currently located "Global 1" is built.  © dpa-Bildfunk Photo: Jens Büttner/dpa-Zentralbild/dpa

The pre-financing bank carried out all transfers to the employees, from whom there was a declaration of assignment, it said. more

View of the grounds of the MV shipyards in Wismar © NDR

First of all, the restructuring expert will have to take care of the outstanding wages and salaries of the employees. more

This topic in the program:

NDR 1 Radio MV | 01/17/2022 | 3:00 p.m

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