Genting Hong Kong's CEO Lim Kok Thay resigns less than a week after cruise operator files to wind up

HONG KONG: Genting Hong Kong's chairman and CEO Lim Kok Thay has resigned, said the company in a stock exchange filing on Monday (Jan 24).

The company's deputy CEO, Au Fook Yew, has also stepped down.

Both resignations, effective Jan 21, come less than a week after the cruise operator filed to wind up the business after failing to secure funding to pay its debts.

The announcement stated that both Lim and Au have confirmed that they have "no disagreement with the Board and there is no matter relating to his resignation that needs to be brought to the attention of the shareholders of the Company".

It also said that shareholders, investors and potential investors of Genting Hong Kong "are advised to exercise caution" when dealing in its securities.

Trading of its shares has been suspended since Jan 18, and will remain so until further notice.

Genting Hong Kong, which is part of Malaysia's Genting Group, reported in May 2021 a net loss of US$1.7 billion in 2020, amid travel restrictions put in place due to the COVID-19 pandemic. 

It warned earlier in January that it faces potential cross-default amounting to US$2.78 billion, following the insolvency of its German shipbuilding subsidiary.

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. 

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