German shipbuilding conglomerate MV Werften has been handed a €175m ($197m) lifeline by a consortium of banks.
The funds are required to cover interim financing needs of the shipbuilder where production has been interrupted by the coronavirus pandemic.
The credit facility has been granted by 17 banks.
The deal, agreed on Monday, is underwritten by the German state of Mecklenburg-Western Pomerania.
Next step
The state's economy minister, Harry Glawe, described the funding as "a good result, which also gives stability for the coming weeks".
"But we are not over the mountain yet," he said.
Glawe said it was important that the shipyard proceed to the next step involving the application for more funding.
The initial funding will cover the shipbuilders financing needs from July to September.
But the shipyard is expected to make an application for a further €570m in financing to be provided from the Economic Stabilisation Fund (ESF).
The ESF is a facility set up by the German government to mitigate the impact of the coronavirus pandemic.
Cruiseship concerns
MV Werften is part of Genting Hong Kong, one of the main players in the Asian cruise market.
The company controls three shipyards in Germany in Wismar, Rostock and Stralsund.
Workers at its yards stopped normal work on 20 March.
Since then, trade unions have expressed fears that thousands of workers jobs may be destroyed as a consequence of the coronavirus.
German yards have built up a lucrative niche, focusing on cruiseships, ropax ferries, yachts and offshore vessels.
But the spread of the pandemic has decimated these sectors as demand for cruise and passenger vessels has dried up.
That has had severe consequences for Germany's two cruise shipbuilding conglomerates — MV Werften and rival shipbuilder Meyer Werft.
