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MV Werften back to safe waters as it gets emergency funding

June 30, 2020

Banks and guarantors have released €175 million in emergency financial aid for German shipbuilder MV Werften, part of Genting Hong Kong.

The funds were released from a blocked account by seventeen banks, the Federal State Government of Mecklenburg-Vorpommern revealed on 29 June 2020.

MV Werften was forced to stop production at its shipyards in Wismar, Rostock and Stralsund in late March due to the coronavirus outbreak. As a result, the shipbuilder has been facing financial difficulties that could have resulted in bankruptcy without the new capital injection.

As explained, MV Werften needed interim financing to make ends meet and pay its suppliers by September. In September, MV Werften is expected to receive another €570 million in aid to finance vessels under construction. The shipbuilder recently applied for this aid which is part of the federal COVID-19 rescue package.

Harry Glawe, Minister of Economics, Employment and Health, said that with the decision to release €175 million for MV Werften, the first milestone has been reached. According to him, the decision is a strong signal of all parties involved in MV Werften and the maritime location of Mecklenburg-Vorpommern.

Glawe added that the liquidity of the shipyards can now be ensured and invoices from suppliers paid.

Reinhard Meyer, Finance Minister, said that the decision is the basic requirement for the preservation of many high-quality industrial jobs.

The post MV Werften back to safe waters as it gets emergency funding appeared first on Offshore Energy.