Genting Hong Kong announces recapitalization
Genting Hong Kong has announced that it has made a series of deals to gain access to new loan facilities and an extension on existing arrangements.
Hong Kong.- Casino cruise ship operator Genting Hong Kong Limited has announced it has reached an agreement with the company’s relevant financial creditors, partners and other stakeholders.
The agreement grants it access new loan facilities of US$700m, an amendment and extension of existing financial indebtedness and a provision of backstop funding arrangements to address future liquidity needs.
The company said the arrangements would create a stable runway for the firm “to execute a fully-funded business plan aligned with anticipated market recovery as Covid-19 restrictions ease.”
In May, Genting Hong Kong published its audited 2020 results, revealing that revenue fell from US$1.56bn to US$366.8m mainly due to the Covid-19 pandemic and the resulting suspension of cruise operations.
The company reported a net loss of US$1.72bn for 2020, which compares to a loss of US$158.6m in 2019.
As for the second half of 2020, Genting Hong Kong reported that total revenue was down from US$831.8m to US$140.6m. It reported a net loss of US$973m compared to US$102.1m in H2 2019.
Although at the time the company remained optimistic that major economic and trade activities, including cruising, would resume, it stated that the Covid-19 pandemic would continue to have a material impact on the Group’s business.
In May, the company reported it reached a recapitalisation proposal with its stakeholders to access a new US$261.5m loan, which includes a small stake in the company, to finish construction of its Crystal Endeavor and Global Dream vessels.
Genting Hong Kong voluntarily suspends Explorer Dream cruising activities
In its latest statement, the company noted that it suspended Explorer Dream cruising activities on May 12 due to a new Covid-19 outbreak in Taiwan. The Government indicated that cruises can only resume when the current level 3 alert is lowered to level 2.
In Singapore, the capacity of World Dream was reduced from 50 per cent to 25 per cent in May 2021 but returned to 50 per cent on June 14.
The company has been allowed to resume the Genting Dream‘s cruises in Hong Kong from the end of July. Genting Hong Kong will only operate with vaccinated passengers and at 50 per cent of its capacity, with no port visits.
Kent Zhu, president of Genting Dream Cruises, said: “We will mobilise our resources across the region to bring Genting Dream into Hong Kong by June to begin her quarantine process so that she will be ready for July sailings in time for the summer holidays.”
