German builder Wadan Yards has received further financial assistance, this time a grant from the state of Mecklenburg-West Pomerania to extend the length of the loan it was granted at the end of last year.
In December 2008, Wadan secured a EUR60 million (US$774.4 million) bridging loan to save it from insolvency, and has now asked for more time to pay back part of the amount, the office of the state parliament's finance committee said.
Wadan was also granted a further US$23.3 million credit line, which is to be financed with the remaining US$61.9 million to be repaid by March.
Last week, Wadan secured a US$231 million loan from the Deutsche Bank and KfW Ipex consortium. The company's two yards in Wismar and Rostock-Warnemunde went bankrupt last year after unsuccessful attempts to secure bank loans. The new loan is a part of the German government's economic stimulus package whereby the Government will take on 90 percent of the credit risk while the banks assume only 10 percent.
