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We know everything about bankruptcy
24/11/2024
Sunday
THIS DAY IN HISTORY:
24 November 
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
24 November
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
Two German shipyards filed for bankruptcy
On Monday, Two German shipyards - MV Werften and Lloyd Werft, owned by the Hong Kong company Genting, filed for bankruptcy. The information became known after the parent company, which also owns major cruise operators (Dream Cruises, Crystal Cruises, Star Cruises) and operates the resort casino Resorts World Manila in the Philippines, suspended trading in its securities on the Hong Kong Stock Exchange.
Experts note that the main reason for the crisis of shipyards was a pandemic - the entire world tourism industry became its victim. In particular, Genting Hong Kong suspended payments of debt to its creditors in the amount of $ 3.4 billion back in August 2020, without fulfilling its obligations to repay this debt by the end of the year.
The eastern German shipyard MV Werften has filed for insolvency over the construction of the large cruise ship Global Dream. Initially, it was assumed that the liner with a displacement of 208 thousand tons, designed for 5 thousand people, would be launched in 2021. However, the construction of the ship was suspended due to the COVID-19 pandemic. The liner was completed only by 75-80%.
During negotiations between the German government and the board of the company, which is headed by the Malaysian billionaire Lim Kok Thay, there have been several attempts to restructure the debt. In particular, the government offered to allocate about ˆ 600 million (approximately $ 678 million) to rescue the enterprise, provided that the company's management takes at least 10% participation in the investment. The unfinished liner was also supposed to be made as collateral for a loan. However, in the end, German officials failed to come to an agreement with the leadership of Genting.
Genting, in turn, says that the bankruptcy of the MV Werften shipyard will inevitably cause a cross default. Because of it, the Hong Kong-based firm will have to face claims for payments of about $ 2.78 billion.
Against this background, a less noticeable event was the bankruptcy of the Lloyd-Weft shipyard, located in Bremerhaven and also owned by Genting. The company was engaged in major repairs of cruise ships, paying more and more attention to the repair of luxury yachts.
Last year, the parent company announced plans to close the shipyard, but recently it was reported that negotiations with representatives of the company from UAE to sell it were underway. The letter of intent to acquire a 50% stake in Lloyd-Weft, which employed 300 employees, was signed as well.
Experts note that the main reason for the crisis of shipyards was a pandemic - the entire world tourism industry became its victim. In particular, Genting Hong Kong suspended payments of debt to its creditors in the amount of $ 3.4 billion back in August 2020, without fulfilling its obligations to repay this debt by the end of the year.
In 2020, the firm Genting, which offered its clients ‘cruises to nowhere’, reported a loss of $ 1.72 billion.
In the first half of 2021, there were another $ 283.3 million of losses. According to experts, in these conditions, it is not surprising that the developer of cruise ships turned out to be insolvent.The eastern German shipyard MV Werften has filed for insolvency over the construction of the large cruise ship Global Dream. Initially, it was assumed that the liner with a displacement of 208 thousand tons, designed for 5 thousand people, would be launched in 2021. However, the construction of the ship was suspended due to the COVID-19 pandemic. The liner was completed only by 75-80%.
During negotiations between the German government and the board of the company, which is headed by the Malaysian billionaire Lim Kok Thay, there have been several attempts to restructure the debt. In particular, the government offered to allocate about ˆ 600 million (approximately $ 678 million) to rescue the enterprise, provided that the company's management takes at least 10% participation in the investment. The unfinished liner was also supposed to be made as collateral for a loan. However, in the end, German officials failed to come to an agreement with the leadership of Genting.
German Economy Minister Robert Habek said on Monday that the government did everything possible to avoid bankruptcy of the shipyard in the hope of preserving jobs.
However, the owners of the company rejected the proposed terms of financial assistance. The German authorities are calling for a long-term restructuring of the company, its possible reorientation to the offshore industry.Genting, in turn, says that the bankruptcy of the MV Werften shipyard will inevitably cause a cross default. Because of it, the Hong Kong-based firm will have to face claims for payments of about $ 2.78 billion.
Against this background, a less noticeable event was the bankruptcy of the Lloyd-Weft shipyard, located in Bremerhaven and also owned by Genting. The company was engaged in major repairs of cruise ships, paying more and more attention to the repair of luxury yachts.
Last year, the parent company announced plans to close the shipyard, but recently it was reported that negotiations with representatives of the company from UAE to sell it were underway. The letter of intent to acquire a 50% stake in Lloyd-Weft, which employed 300 employees, was signed as well.
12.01.2022
