Genting Hong Kong confirms filing for bankruptcy protection
The company says it has “exhausted all reasonable efforts” to negotiate with its creditors and stakeholders.
Hong Kong.- Genting Hong Kong has issued a statement confirming it has filed for liquidation after a German court rejected a request to release US$88m in funds for its German shipyard unit MV Werften. The cruise ship operator said the petition was essential to “maximise the chance of success of the financial restructuring and to provide a moratorium on claims by any of its unsecured creditors and to seek to avoid a disorderly liquidation of the company.”
According to the statement, the majority of the company’s existing operations will cease to operate except for cruise lines by Dream Cruises Holding Limited that shall continue “to preserve and protect the core assets and maintain the value of the Group.”
The company said no definitive agreements on a solvent, consensual and inter-conditional restructuring solution had been reached.
The company’s available cash balances are expected to run out on or around the end of January according to the Company’s cash flow forecasts. Genting Hong Kong said last week that the bankruptcy filing would trigger a cross-default event under Genting Group’s financing arrangement, amounting to US$2.78bn.
The company shares plunged 56 per cent after the company’s shipyard located in Germany filed for bankruptcy.
