By Lorretta Chen (Bloomberg) Genting Hong Kong, the troubled cruise operator controlled by Malaysian tycoon Lim Kok Thay, warned Tuesday of more defaults due to the insolvency of its German shipbuilding subsidiary.
The company “considers that it has exhausted all reasonable efforts” to negotiate with counter-parties under the current financing arrangements, it said in a filing to the Hong Kong stock exchange.
That came after MV Werften, an indirect wholly-owned subsidiary, filed for insolvency on Monday to a local court in Germany, as salvage talks between the local governments and Genting came to a dead end. Potential cross defaults arising from that insolvency could amount to $2.78 billion, and relevant creditors affected “may have the right” to either demand payment or take actions regarding the financing terms, Genting said.
Also Read: Cruise Ship Builder MV Werften Files for Bankruptcy in Germany -Reports
The cruise operator’s financial health rapidly deteriorated after the Covid-19 pandemic prompted a string of restrictions that have led to restructurings and insolvencies at travel industry companies around the world. Genting Hong Kong halted debt payments to creditors totaling $3.4 billion in August 2020 and was in default of that amount as of Dec. 31 that year. The firm, which has offered “seacations” amid a global cruise-to-nowhere trend, reported a record loss of $1.7 billion last May.
In its filing Tuesday, Genting Hong Kong said that the board is in discussion with bankers, shareholder partners in Dream Cruises Holding, and professional advisers to evaluate available options.
Shares of the company have been suspended from trading since Jan. 7 until further notice.
Germany’s federal government has blamed Genting Hong Kong for MV Werften’s insolvency and 1,900 jobs lost as a result, saying that an offer of aid was turned down by the company.
By Lorretta Chen © 2022 Bloomberg L.P.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 109,810 members that receive our newsletter.
Have a news tip? Let us know.
By Adrian Wong (Bloomberg) –Tickets for a voyage on board Walt Disney Co.’s first Asia-based cruise ship go on sale next week, as the entertainment giant takes advantage of a tourism...
Norwegian coastal cruise operator Hurtigruten has announced a transformative acquisition deal by a consortium of existing investors, securing €110 million in new long-term funding that promises to reshape the company’s...
The iconic SS United States, once the pride of America’s maritime fleet, is embarking on its final voyage – not across the Atlantic, but towards a new life as the...
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 109,810 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
