Cruise company Genting Hong Kong files for winding up of operations
Bermuda-registered cruise operator Genting Hong Kong has filed a petition for winding up its operations in compliance to Hong Kong Stock Exchange regulations, the company said in a statement dated January 19, 2022.
Genting said it has “exhausted all reasonable efforts” to negotiate with relevant counterparties under its financing arrangements and that no definitive agreements on a solvent, consensual and inter-conditional restructuring solution amongst the various parties has been reached.
Genting claims to have no access to any further liquidity under any of the Genting Group’s debt documents and the company’s available cash balances are expected to run out on or around the end of January 2022 according to cashflow forecasts.
In view of the Genting Group’s financial conditions, Genting Hong Kong made separate filings at the Supreme Court of Bermuda on Tuesday, January 18. These include:
- a petition pursuant to section 163 of the Bermuda Companies Act for the winding up of the company; and
- a summons to seek the appointment of three Hong Kong- and Bermuda-based joint provisional liquidators (JPL) to develop and propose any restructuring proposal in respect of the company’s debts and liabilities pursuant to section 170(2) of the Companies Act.
Genting said it seeks an order from the Bermuda Court to authorise the JPLs to, among other things, facilitate, and assist the company in developing and proposing, a restructuring of the group’s financial indebtedness in a manner designed to allow the company to continue as a going concern, with a view to making a compromise or arrangement with the company’s creditors, including (without limitation) a compromise or arrangement by way of a scheme of arrangement pursuant to section 99 of the Companies Act or otherwise be authorised to dispose of all or certain of the company’s assets with a view to maximising value and returns for creditors.
An ex parte hearing in respect of the petition and the JPL application is scheduled to be heard by the Bermuda Court at 14:30 local time on Thursday, January 20.
Certain business activities of the Genting Group, including but not limited to the operations of cruise lines by Dream Cruises Holding, shall continue in order to preserve and protect the core assets and maintain the value of the group. However, Genting anticipates that majority of the group’s existing operations will cease to operate.