Genting Hong Kong Boss Blames German Officials for its Troubles

CEO Lim Kok Thay says certain parties did not honor their agreements.

Now departed Genting CEO Lim Kok Thay and President Colin Au both feel the collapse of their company was due in part to actions by German Authorities. In a letter of explanation, they wrote, "We were put in this position as a direct result of counterparties not honoring their contractual commitments that many of you negotiated tirelessly to achieve as part of the June 2021 restructuring.

The two executives referred to a bailout plan arranged with the German Government. The Government responded to the report with a statement that they did everything in their power to save MV Werften.

Earlier this month, Economic Minister Robert Habeck blamed Genting itself for the shipbuilder's failure, saying the state had offered a loan of 600 million euros ($670 million) on the condition that Genting provide an additional 60 million euros plus guarantees for the federal funds. Genting turned that down, Habeck said. "According to an Economy Ministry statement to Bloomberg. In order to meet its responsibility for the shipyard, the parent company Genting Hong Kong should have made an appropriate financial contribution to close the short-term liquidity gap and to secure the financing provided by the WSF," according to the Economy Ministry statement to Bloomberg. "It is common practice in the context of WSF stabilization measures for the owner to make their own contribution."

In layman's terms, the Germans wanted the Malaysians to have a little "skin in the game."