Jan 18, 2022by James Chapple
Crystal Cruises parent company Genting Hong Kong may file for provisional liquidation on Tuesday (January 18) after its shipbuilding subsidiary went bankrupt last week.
In a memo to the Hong Kong stock exchange, Genting said that unless it receives a credible restructuring proposal, its board should consider filing for interim liquidation in Bermuda.
“The Company considers that it has exhausted all reasonable efforts to negotiate with relevant counterparties in connection with its financing agreements,” Genting said.
Trading in the company’s shares has been suspended until further notice.
Genting Hong Kong, which also owns the Star Cruises and Dream Cruises brands, filed for bankruptcy at its German subsidiary MVWH – MV Werften Holdings – last week after insurers refused to cover a loan on the basis of a prospect of five years for the Genting Group.
Earlier this year, Genting revealed he had been denied a previously agreed $88 million loan. He recalled on Tuesday that his inability to access this cash had created “an immediate and significant hole” in the group’s access to liquidity.
The company’s board said on Tuesday it was now convinced that the appointment of interim liquidators was “essential” in order to “maximize the chances” of a successful restructuring, to provide for a moratorium on claims and to avoid a “disorderly liquidation” by any of its creditors.