Genting has filed for bankruptcy in Malaysia, which means the company’s cruise ships and other assets will be up for grabs. There are a number of possible buyers, from Time Inc to Royal Caribbean International Ltd., but no clear answer yet on how it may affect passengers who’ve been waiting months – or longer – to book their vacations.
Crystal Cruises, which is the cruise brand of Genting Malaysia, filed for bankruptcy on March 27th. This means that all of the company’s assets are now up for sale. Crystal has a wide range of cruise brands in different parts of the world and it remains to be seen what will happen to them next. Read more in detail here: crystal cruises.
The parent firm of Asia’s largest cruise line has filed a request with the Bermuda Supreme Court to shut its operations. Genting Hong Kong, which owns Star Cruises, Crystal Cruises, Dream Cruises, and the German shipyard MV Werften, claims financial reserves are running low and will run out by the end of January.
Genting has just announced that it will default on $2.8 billion in financing arrangements, owing to the collapse of its German shipbuilding company MV Werften. As funding runs out, some cruise lines may be forced to close their doors, with the corporation warning that most operations may cease to exist.
Genting’s Debts are Unpayable
On Tuesday, Genting filed a business closure or winding-up petition with the Bermuda Supreme Court. It also urged the courts to appoint liquidators and suggest reorganization strategies for the ailing corporation.
This might include the sale of assets such as Crystal Trips, Dream Cruises’ giant cruise ships, Star Cruises, which is renowned for its popular short cruises from Hong Kong with massive casinos, and MV Werften, where Dream Cruises’ newest 9,500-passenger Global Dream is under construction.
Due to a shortage of cash reserves, Genting Hong Kong is projected to fail on its loan obligations, and the firm has been unable to get fresh capital. The overwhelming bulk of activities would be halted if the Bermuda Supreme Court approves a windup. However, the company also declared that certain Dream Cruises operations will continue:
“In order to preserve and protect the core assets and maintain the value of the group, certain business activities of the group, including but not limited to the operations of cruise lines by Dream Cruises Holding Limited, shall continue; however, it is anticipated that the majority of the group’s existing operations will cease to operate.”
Dream Cruises provided the rendering.
Genting Hong’s problems began earlier this month. Genting had been aggressively seeking funds to finish the building of its newest ship due to the effect of COVID-19. MV Werften has been working on the 9,500-passenger Global Dream. The German federal state of Mecklenburg-Vorpommern suspended the sale after Genting obtained an agreement for $88 million in backup money.
“The Company and the Group have no access to any additional liquidity under any of the Group’s loan arrangements,” Genting stated on Wednesday. “According to the Company’s cashflow predictions, the Company’s available cash balances are projected to run out on or around the end of January 2022.”
What Can Crystal, Dream, and Star Cruises Expect in the Future?
The future of Genting Hong Kong’s three cruise lines is, to put it mildly, questionable. Although the corporation said that certain assets will remain operational, it is unclear which ones.
Photo credit: Shutterstock.com/Vytautas Kielaitis
The information is hardly surprising. Crystal Cruises published a statement in August 2020, addressing worries about Genting’s financial situation:
“Genting Hong Kong is undergoing a financial reorganization and fundraising exercise to address cash challenges that have arisen as a consequence of its ships’ inability to operate due to COVID-19. It’s critical to realize that the firm is not going out of business.”
“Whatever alternative our parent company chooses, Crystal will be able to do its operations.” Furthermore, we have always been dedicated to upholding our contractual commitments to guests and travel partners, including refund processing.”
The condition of Genting Hong Kong was considerably better at the time than it is today. With liquidators and a corporate wind-down, the futures of the three cruise lines, as well as a slew of resorts and casinos throughout the globe, are in jeopardy.
Genting Hong Kong is a casino, resort, and cruise company owned by Malaysian billionaire Lim Kok Thay. Lim Kok Thay’s family owns 75.5 percent of Genting Hong Kong and 43 percent of Genting Bhd in Malaysia.
Genting filed for bankruptcy today, which means the company’s assets will be liquidated. What does this mean for its cruise brands? Reference: dream cruises.
Frequently Asked Questions
Does cruising have a future?
A: No, its not.
Will cruises ever start up again?
A: I dont know.
Does Genting own Crystal Cruises?
A: Yes, Genting owns Crystal Cruises.
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