Kenting of Hong Kong files for liquidation in the middle of the German case

While staying in Hong Kong on Wednesday, July 28, 2021, the Genting Cruise Lines from the Gingerbread Dream Board Hong Kong Skyline.

Lam Yig | Bloomberg | Getty Images

Cruise operator Kenting Hong Kong On Wednesday it said it had filed to close the company because its money was running out by the end of January.

It comes on heels Warnings from the company last week As a result of the bankruptcy of its German shipbuilding subsidiary MV Warften, it could face potential cross-defaults on $ 2.8 billion in financial arrangements.

Genting said in a filing to the Hong Kong exchange on Wednesday that the company could not “repay the loans immediately” as cash flow dried up.

The troubled shipping operator said it had applied to the Bermuda Supreme Court to finalize the company after “all reasonable efforts to negotiate with the relevant opposition parties under its financial arrangements”.

Genting is part of a larger conglomerate in Hong Kong, including Genting Malaysia and Genting Singapore. The corporation owns the Resorts World Leisure Park chain, which includes assets in Singapore, New York City and the United Kingdom. It also has 30 casinos across the UK

The company, which is controlled by the mother of Malaysian President Lim Kok, has been hit hard by the Kovit-19 epidemic as the trip came to a standstill.

The legal battle in Germany

Genting was in the midst of legal proceedings with MV Werften over a $ 88 million backstop facility – or secondary repayment fund – with a regional government in Hong Kong.

But in a ruling this week, the German federal state of Mecklenburg-Vorpommern rejected Genting’s application for $ 88 million, as Genting filed earlier this week.

“The company and the group have no access to any liquidity under any of the group’s credit documents and the company’s cash reserves will be depleted by or around the end of January 2022, according to the company’s liquidity forecasts,” Genting said Wednesday.

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