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Cruise operator Genting Hong Kong files to wind up company

Cruise operator Genting Hong Kong files to wind up company
A cruise ship operated by Dream Cruises, which is owned by Genting Hong Kong, at Singapore's Marina Bay Cruise Centre on Jul 14, 2021. (Photo: CNA/Jeremy Long)

SINGAPORE: Cruise operator Genting Hong Kong has filed to wind up the company after failing to secure funding to pay its debts, it said in a statement to the Hong Kong stock exchange on Wednesday (Jan 19). 

The company had warned last week that it faces potential cross-default amounting to US$2.78 billion, following the insolvency of its German shipbuilding subsidiary.

In its statement on Wednesday, Genting Hong Kong said it has "exhausted all reasonable efforts" to negotiate with its creditors and stakeholders.

Genting Hong Kong owns the Star Cruises and Dream Cruises lines which serve the Asia Pacific region, as well as the luxury Crystal Cruises line based in Miami. 

"Certain business activities of the Group, including but not limited to the operations of cruise lines by Dream Cruises Holding Limited, shall continue in order to preserve and protect the core assets and maintain the value of the Group," the company said in its statement. 

"However it is anticipated that majority of the Group’s existing operations will cease to operate."

In response to questions about its operations, a Dream Cruises spokesperson referred CNA back to the Genting statement made to the Hong Kong stock exchange, adding that no further comments would be provided at this time. 

Genting's German shipbuilding subsidiary, MV Werften, filed for insolvency last week after it failed to secure funding for the completion of its Global One mega-liner. 

Genting Hong Kong, which is part of Malaysia's Genting Group, reported in May a net loss of US$1.7 billion in 2020 amid travel restrictions put in place due to the COVID-19 pandemic. 

Source: CNA/az(gs)

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