Wadan's shipyards in Wismar and Rostok-Warnemund, which were bought by a large Russian company, are on the brink of bankruptcy. The official appeal to start the bankruptcy procedures has already been directed by the court in Germany.
Some 2,700 jobs are at stake.
Regional authorities stated that they would not support the shipyards, saying that they had already given over US$335 million in credits to the shipyards.
"Many European and German shipyards are already ruined," said Andrey Burlakov, the Russian owner of the German shipyards. "The position of Wadan Yards is steadier… The authorities and German banks understand this situation and actively support us."
Responding to claims from German journalists that the shipyards failed to attract new customers under Russian management, Mr Burkalov said: "Crisis is a crisis for us too. But old clients willingly come back to us. We are one of the very few shipbuilding groups in the world capable of making a wide range of high-tech ships."
