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Published on Thursday, August 20, 2020

Genting HK in financial trouble, citing stalled cruise operations






Genting Hong Kong is facing choppy waters.


Citing a cash crunch in its cruise operations, Genting has stopped paying all creditors, it said in a statement to the Hong Kong stock exchange.


That led to its share price plunge by more than one-third.


The company owed $3.4 billion as of the end of July.


All available funds will be used to maintain 'critical services' for its business operations.


 It has undertaken various cost reduction measures over the last few months to conserve as much cash as possible.


It led analysts to suggest it may have to sell assets or even liquid the company.


It blamed the impact of the Covid-19 pandemic on its cruise brands Dream Cruises, Star Cruises and Crystal Cruises.


Dream Cruises just restarted operations offering short cruises in Taiwan.


Genting warned of delays in deliveries of new ships Crystal Endeavor and Global Dream which are both under construction.


It failed to pay recent instalments of €3.7 million for the financing of ships, it said in the filing.


Genting HK has asked creditors to set up a committee to look at a debt restructuring plan for the company.


 


Written by Ray Montgomery, Asia Pacific editor

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