Genting Hong Kong, which owns Crystal Cruises, Dream Cruises and Star Cruises, faces an immediate debt payment of $2.78 billion USD after filing for bankruptcy this week following a failed bailout proceeding involving the German government.
Genting Hong Kong's MV Werften shipyard was constructing the new 5,000-passenger Global Dream ship when it ran out of funds.
A €600 million (US$678 million) bailout plan that required Genting Hong Kong to put up 10 per cent of the capital was proposed, but fell through.
Genting Hong Kong's MV Werften shipyard filed for insolvency on Monday (Jan. 10).
The “cross-default triggered” would impact business operations, prospects, and the company’s financial condition, Genting’s board said in a statement to the Hong Kong stock exchange, as reported by the South China Morning Post.
Genting’s board, led by Malaysian billionaire Lim Kok Thay, is currently evaluating options, reports say.
Global Dream was supposed to set sail in 2021 but construction paused at 80 per cent completion due to pandemic-related challenges, MV Werften said.
The insolvency filing will trigger cross-default events under financing arrangements of the Genting group, involving an aggregate principal amount of US$2.78 billion, the company said in its exchange filing, giving creditors the right to demand or sue for immediate repayment.
Genting Hong Kong, which also owns and operates the Resorts World Manila casino and resort in the Philippines, reported a US$283.3 million loss in the first half of 2021, in addition to a US$1.72 billion setback in 2020.
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