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.
Shares of Genting Hong Kong were suspended from trading on Tuesday, and the company said it would suspend until further notice.
Shares of Genting in Malaysia and Singapore also traded higher on Wednesday. Genting Singapore Shares rose 0.64% Shares in Malaysia Decreased by 1.72%
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.
It said it had applied to the court to appoint temporary artists and also sought to authorize artists to carry out the company’s debt restructuring.
The company reported a net loss of $ 238 million for the period ended June 2021, compared to $ 742.6 million for the same period in 2020. Genting Hong Kong stopped paying nearly $ 3.4 billion in debt in 2020. According to news reports.
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