By Paris Costas

German shipbuilder MV Werften, one of a handful of yards worldwide that can build large cruise ships, has filed for bankruptcy after talks between its owner Genting Hong Kong Ltd. and the German state failed to reach a deal on a rescue package.

Werften has cut its 2,000 workforce by half over the past year as ship orders have dried up with the cruise industry still reeling from the travel bans of the Covid-19 pandemic.

The company has three shipyards and is waiting on a federal relief package from the German government worth around $680 million to complete work on one of its 11 ships on order worth billions of dollars.

The government has asked Genting to contribute $62 million in a rescue plan, but Genting, which has invested more than $2 billion in the company since buying it in 2016, says it will contribute around $42 million.

German media reported that the shipbuilder had a liquidity gap of around $150 million.

Write to Paris Costas at paris.costas@wsj.com

(END) Dow Jones Newswires

01-11-22 0647ET