In view of financial difficulties, an external restructuring expert is now to help Meyer Werft find its way back into calm waters.
The situation at the Emsland-based Meyer Werft is tense. The reason for this is the company’s high level of debt, which has to repay a construction loan of €550 million as early as November. Refinancing is not yet secured, according to reports. [ds_preview]
Ralf Schmitz, an experienced restructurer, has now been hired to reorganise the company as Chief Restructuring Officer (CRO). This was reported by WirtschaftsWoche. Business partners and banks have already been informed, it is said.
The financial requirements were already discussed in the economic committee of the Lower Saxony state parliament at the end of last week (HANSA reported). According to reports, further guarantees are being negotiated in order to secure the financial requirements. However, no official statements were made after the meeting, which was also attended by Lower Saxony’s Minister of Economic Affairs, Olaf Lies. Talks are also underway with the government in Mecklenburg-Western Pomerania.
Construction period financing challenging for Meyer Werft
The order situation at Meyer Werft has improved significantly since the US shipping company Carnival Cruise Line ordered two more newbuildings from Meyer in February and shortly before Easter. However, as is usual in this industry, the shipyard has to pre-finance the construction of the ships. A customer only pays the majority of the contract price (around 80%) when a ship is delivered.
Meyer Werft now has a total of six cruise ships in its order book, as well as a research vessel and sections for four offshore converter platforms. It is also involved in the construction of two naval tankers. The company, with around 3,000 shipyard employees, has work until 2026.
