Former Genting HK CEO blames Germany for company’s fate

Tan Sri Lim Kok Thay has said that the German government broke its promise to provide capital to MV Werften Holdings Ltd (MVWH), the company’s shipyard in Germany.

Hong Kong.- A few days after resigning, Tan Sri Lim Kok Thay, former chairman, chief executive officer and executive director of Genting Hong Kong, has blamed the German government for the company’s banckruptcy.

As part of a restructuring deal last year, Germany’s former government agreed to provide an RM2.598bn (US$620m) line of credit to help MV Werften Holdings Ltd continue to build the cruise ship Global Dream. However, when Germany’s new government took office in December, it proposed an alternative arrangement, which Lin described as “unreasonable”, and sought personal guarantees.

In December, Genting HK said that a company related to Lim had agreed to provide a bridge loan of US$30m as part of a restructuring plan agreed with creditors but Lim said the new German government didn’t allow Genting Hong Kong access to the loan.

Germany’s economy minister Robert Habeck said the government was open to discussing a €600m (US$678m) rescue plan but wanted Genting HK to provide an additional €60m plus guarantees for the federal funds. 

In a letter sent to Bloomberg, Lim states: “Genting Hong Kong would have survived these compounding Covid ‘black-swan’ events if our contractual parties had honoured their obligations.”