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Genting Hong Kong Cruise Line Files for Bankruptcy

Genting Hong Kong is majority controlled by Malaysian tycoon Lim Kok Thay, whose conglomerate owns casinos in UK and Southeast Asia


Genting Hong Kong
The cruise ship Genting Dream is seen in waters off Hong Kong. Photo: Genting Cruises.

 

Genting Hong Kong has filed for bankruptcy in the latest blow to cruise operators after the coronavirus pandemic and its associated lockdowns and border restrictions ravaged the industry.

The company asked the Supreme Court of Bermuda to appoint provisional liquidators.

“The company considers that it has exhausted all reasonable efforts to negotiate with the relevant counter-parties under its financing arrangements,” the company said in a Hong Kong stock exchange filing on Wednesday.

“Notwithstanding these efforts and lengthy negotiations with creditors and other stakeholders as of the date of this announcement, no definitive agreements on a solvent, consensual and inter-conditional restructuring solution amongst the various parties has been reached,” it added.

Genting Hong Kong is majority controlled by Malaysian tycoon Lim Kok Thay, whose conglomerate owns casinos in the UK and south-east Asia.

The company’s German ship builder MV Werften filed for insolvency on Monday, threatening to trigger cross defaults at Genting Hong Kong and its subsidiaries on liabilities with principal payments totalling nearly $2.8 billion, Genting said in a filing.

On Monday, a German court denied an application to compel the state of Mecklenburg-Western Pomerania to allow MV Werften access to a $88 million loan.

The coronavirus pandemic has pummelled the company’s financial health as travel restrictions and lockdowns forced it to suspend cruises. Trading of Genting’s shares in Hong Kong was suspended on Tuesday morning.

 

  • George Russell

 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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