A court in the German city of Schwerin has ruled against Genting Hong Kong , the troubled cruise shipping group whose MV Werften unit filed for insolvency last week, in a dispute over a loan agreement, the public service broadcaster Norddeutsche Rundfunk (NDR) reports.

The dispute concerned a loan agreement under which the State of Mecklenburg- Vorpommern, where the shipyards of MV Werften are located, should grant Genting Hong Kong a loan of €78 million.

However, the court had not been convinced that Genting Hong Kong was facing an emergency situation and that the loan should be granted to the company as a result of this.

The parties can appeal the ruling to a higher court.

Meanwhile, an administrator is expected to ensure the completion of the 208,000 gross ton Global Dream that is under construction at MV Werften for Dream Cruises, which is partly owned by the Genting Hong Kong group, the report said.