SINGAPORE: Cruise operator Dream Cruises said that its World Dream vessel will cease operations after its current sailing returns to shore on Wednesday (Mar 2).
In a statement on Tuesday, Genting Hong Kong, which owns Dream Cruises, said it "has become impossible" for it to make the further financial commitments necessary to enable the World Dream to continue to operate.
Dream Cruises had said earlier on Jan 23 that it would suspend bookings for an initial period of two weeks after its beleaguered parent company, Genting Hong Kong, applied to be wound up. The suspension was extended on Feb 4.
Customers who have paid deposits for sailings after Wednesday may submit their claims for refunds, said Genting Hong Kong.
However, it added that it is still "assessing the impact of the cessation of operation of the World Dream, in particular its ability to meet potential refund claims".
"Despite the continued efforts to source and introduce external funding, the group’s liquidity continues to deteriorate given the absence of sustainable operational income under current challenging circumstance and in the face of mounting creditor pressure which poses an immediate threat to the operation of the vessel," it said.
Those who wish to submit their claims should attach their booking confirmation and payment records and email them to joint provisional liquidators ProjectGenting [at] alvarezandmarsal.com for assessment.
Dream Cruises' World Dream is one of two vessels allowed to offer cruises to nowhere in Singapore. The other is Royal Caribbean's Quantum of the Seas.
The joint provisional liquidators have been identifying potential remediation plans and facilitating the restructuring of the group including Dream Cruises since their appointment on Jan 20, said the cruise operator.
It added that it had obtained "certain emergency funding" which had enabled the World Dream to complete 16 scheduled cruises after the appointment of the joint provisional liquidators.
Genting Hong Kong, which is part of Malaysia's Genting Group, reported a net loss of US$238 million in the first half of 2021, as operations continued to be affected by the COVID-19 pandemic. It reported a net loss of US$1.7 billion in 2020.
The company 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.
The cruise operator warned earlier in January that it faced potential cross-default amounting to US$2.78 billion, following the insolvency of its German shipbuilding subsidiary.
Its chairman and CEO Lim Kok Thay, along with deputy CEO Au Fook Yew, resigned in January.