Genting Hong Kong could file for insolvency as funding dries up

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Genting Hong Kong may file for temporary liquidation on Tuesday (January 18) after it was unable to tie up assets to secure funds to help it stay above water following the insolvency of its German construction auxiliary naval. The troubled travel operator intends to file for temporary liquidation in the courts of Bermuda unless it receives “credible proposals for a solvent, consensual and cross-conditional remedy”, Genting Hong Kong said. in a trade record of the Asian Financial Center. Trading in the organization’s shares has also been suspended.

It came after bailout talks broke down amid a dispute between German authorities and Genting, with both sides blaming the other for the collapse of MV Werften and the potential loss of 1,900 jobs.

Genting Hong Kong’s wholly-owned indirect shipbuilding subsidiary, MV Werften, filed for insolvency with a local court in Germany last week.

The Hong Kong cruise line has warned investors that cross defaults of US$2.78 billion could follow.

The company, which offered “holidays” amid a cruise-to-nowhere trend, reported a record loss of US$1.7 billion last May. The latest developments come just as Hong Kong is reimposing some of its toughest virus control measures since the start of the pandemic.

Genting Hong Kong’s financial health deteriorated after Covid-19 wiped out travel demand and cruise operations were halted globally. This led the industry to go through a series of restructurings and insolvencies.

Genting Hong Kong said on Tuesday that a German court had dismissed a claim that would have given MV Werften access to an $88 million lifeline.

“The company considers that it has exhausted all reasonable efforts to negotiate with relevant counterparties under its funding arrangements,” Genting Hong Kong said in the statement.

“The appointment of provisional liquidators is essential and in the interest of the company, its shareholders and its creditors in order to maximize the chances of success of the financial restructuring and to provide for a moratorium on claims and to seek to avoid a liquidation disorder of society. company by one of its creditors,” he added. Separately, Genting Hong Kong stated that Alan Smith, Lam Wai Hon, Ambrose and Justin Tan have resigned as independent non-executive directors and as such ceased to be members of the audit, remuneration and appointment of the company.

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  • Genting Hong Kong could file for insolvency as funding dries up
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