Genting HK suspends payments to creditors

The business has been heavily hit by consequences of the Covid-19 pandemic.
The business has been heavily hit by consequences of the Covid-19 pandemic.

The company will hold a virtual meeting to give further information on financial restructuring plans. It asked creditors to refrain from legal action.

Hong Kong.- Casino and cruise ship operator Genting Hong Kong has announced it has decided to temporarily suspend all payments to financial creditors.

Days ago the gaming group announced it expected to report a US$300 million loss for the first half of 2020 due to the pandemic.

Now the board has said it will need more time to gather the necessary funds to cope with current fiduciary duties and manage the impact of the pandemic, which saw its sailings suspended.

It said: “After careful consultation with its legal and financial advisers” the board had decided to suspend payments to preserve liquidity and “treat all financial creditors fairly and equitably.”

The firm said the pandemic “has had and will continue to have a material impact on the financial position and results of operation of the group.”

It said that although the company has taken action to reduce costs and conserve cash to minimise its exposure, it is still uncertain if its efforts to raise funds will be successful.

Genting HK’s outstanding financial indebtedness is currently at US$3.37 billion.

The company said it will hold a virtual meeting with creditors to provide further information and advise on restructuring and refinancing options. It asked creditors to form “steering committee” to represent them, with legal and financial advisors.

Genting HK asked the creditors to refrain from taking legal action against the company to ease the way for the restructuring process.

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