Status: 01/17/2022 05:04 a.m
The district court of Schwerin decides today whether the state of Mecklenburg-Western Pomerania has to pay out a loan worth millions to the Hong Kong Genting group.
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.
After the district court’s decision, which is expected around 2 p.m., each side can still appeal to the next instance. The losing party is then expected to do the same.
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