The Meyer Werft, a renowned German shipbuilder, is on the brink of insolvency, but a rescue plan is emerging.

The German government and the state of Lower Saxony are considering taking an 80% stake in the company to prevent its collapse.

This move comes as the shipyard, famous for its cruise ships, faces financial difficulties despite having a substantial order backlog, including four new ships for Disney.

The proposed plan involves a significant capital injection and state-backed guarantees to secure necessary loans.

However, the plan requires approval from various governmental bodies, and time is of the essence, with a deadline looming in mid-September.

The restructuring aims to stabilize the company and ensure its competitiveness in the global market.