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KUALA LUMPUR: Genting Hong Kong is expected to receive 193 million euros ($ 227 million) from the German government for its distressed shipyards in the country, Nikkei Asia reported on Wednesday.
He reported that the payment to the operator of the Star Cruises, Dream Cruises and Crystal Cruises lines will allow work at its shipyards in northeast Germany, grouped under MV Werften, to continue until at least March.
“We have clearly made progress. The federal government is bailing out MV Werften,” said Harry Glawe, finance minister of Mecklenburg-West Pomerania, the state where MV Werften is located.
Nikkei Asia reported that Genting had requested 570 million euros from Germany’s coronavirus stabilization fund.
The decision to award Genting the full amount requested now depends on an assessment of the company’s overall prospects.
Genting bought MV Werften in 2016 at the height of a cruise ship building, but the sector has been among the hardest hit by the coronavirus pandemic, darkening prospects for MV Werften’s 3,100 workers.
In August, Genting Hong Kong froze payments to creditors and said it was seeking a debt restructuring.
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