Cruise ship casino operator Genting Hong Kong is in liquidation proceedings

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Genting Hong Kong Ltd, a Hong Kong-listed gambling cruise ship operator, part of Genting Bhd, a major Malaysian company, is set to complete liquidation proceedings after the company filed for bankruptcy in court. of Bermuda on January 18 of this year.

Many subsidiaries of Genting Hong Kong are also in the process of liquidation

Genting Hong Kong Ltd is trying to satisfy its creditors by selling its assets for maximum return. The various sales transactions, which also include some of the company’s vessels, are at different stages, but most of them are almost complete.

Operations related to the company’s insolvency are carried out by liquidators who find that the group no longer offers cruise services and will not be able to resume such services in the future. Liquidators were appointed for insolvency proceedings on Jan. 20 after the company filed for bankruptcy in a Bermuda court on Jan. 18 and suspended the sale of its shares on the Hong Kong Stock Exchange on the same day. The company struggled with the challenges of the COVID pandemic and after its unit in Germany, whose core business was building cruise ships, faltered, Genting Hong Kong went down that road as well.

Following Genting Hong Kong’s liquidation proceedings, many of the company’s subsidiaries have also initiated such proceedings in the countries where they are registered. So far, the territories in question are Australia, Hong Kong, Malaysia, Singapore and the United States, while the liquidators expect other subsidiaries of the group to also declare default.

The default of cruise ship builder MV Werften

Last January, Genting Hong Kong, owner of cruise ship builder MV Werften, began a legal battle with the German state of Mecklenburg-Vorpommern over expected state funding of $336 million. dollars. The pledged funding included an $88 million stand-by facility that Genting Hong Kong had to withdraw.

The dispute ended in a German district court, which ruled in favor of the government, noting that the state was not obligated to make any payment on the loan. This resulted in the liquidation of MV Werften, which led to the insolvency of Genting Hong Kong’s “Global 1” credit facility, which in turn led to further failures to cover other financial arrangements. Therefore, all these factors contributed to the liquidation of Genting Hong Kong.

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