The parent company of Crystal Cruises has filed for bankruptcy protection after years of financial losses. It is the largest cruise operator in North America and will have to restructure its debt once it emerges from Chapter 11 proceedings. Experts warn that a potential drop in demand could lead to layoffs, as well as reduced spending on other parts of their business like travel reservations and cruises themselves.
The “crystal cruises financial stability 2021” is a topic that has been discussed in the news recently. As of now, it seems like there is an uncertain future for Crystal Cruises as their parent company sinks under debt.
Crystal Cruises’ future is uncertain after parent firm Genting Hong Kong indicated it may run out of funds by the end of the month.
After failing to raise 10% of the cash required for a German government rescue plan, Genting Hong Kong’s MV Werften shipyard in Germany filed for bankruptcy last week.
Crystal, Star Cruises, and Dream Cruises’ parent company has now filed a petition in a Bermuda court to appoint interim liquidators. They will have the authority to sell or shut down sections of the business.
The World Dream of Dream Cruises (Genting provided the image.)
Genting Hong Kong, which is based in Hong Kong, has a registered office in Bermuda, allowing it to apply for liquidation there. The cruise line claimed in a filing with the Hong Kong stock market that it has no more liquidity and expects to run out of cash by the end of the month.
MORE: The United States River Line has placed an order for 12 small cruise ships.
Genting, like almost the entire cruise business, has been hit hard by the worldwide epidemic and its far-reaching effects on tourism. Last May, the corporation reported a $1.7 billion loss, which was a new high. Since 2018, the stock’s value has decreased by more than half.
The developments may not necessarily spell the end for Genting Hong Kong and its biggest shareholder, Malaysian billionaire Lim Kok Thay, who owns the cruise lines.
“Certain business activities of the group, including but not limited to Dream Cruises Holding Limited’s cruise line operations, shall continue in order to preserve and protect the core assets and maintain the value of the group,” the company said in a statement. “However, it is anticipated that the majority of the group’s existing operations will cease.”
The fate of Crystal Cruises, which has the biggest North American profile of Genting Hong Kong’s cruise interests, is not mentioned. It has two oceangoing ships, the Crystal Serenity and Crystal Symphony, as well as a fleet of five European river ships and the Crystal Endeavor exploration ship.
Antarctica’s Crystal Endeavor (Photo courtesy of Crystal Cruises)
The organization has been in business for 31 years and is known for providing one of the top luxury cruise experiences in the world.
Symphony, Serenity, and Endeavor are all sailing at the time of publication, although Crystal’s river ships are generally inactive at this time of year.
Serenity in Crystals (Photo courtesy of Crystal Cruises)
Genting said it was seeking an order from the Bermuda court overseeing the liquidation process authorizing its liquidators to “assist the company in developing and proposing a restructuring of the [company’s] financial indebtedness in a manner designed to allow the company to continue as a going concern,” according to a filing with the Hong Kong stock exchange.
Genting Hong Kong also requested that the court allow its liquidators to “dispose of all or portion of the company’s assets in order to maximize value and returns for creditors.”
The liquidators will “attempt to prevent a chaotic liquidation of the firm,” according to the statement.
Genting Hong Kong is part of a larger parent business, Genting Malaysia, which controls the majority of the Resorts Globe casino resorts across the world and is also managed by Malaysian entrepreneur Lim Kok Thay. The two businesses are financially distinct and do business separately.
READ ALSO: Royal Caribbean Expands Its Cruise With Confidence Program
Watch This Video-
Crystal Cruises is a company that has been in operation since the 1970s. The company’s parent company, Royal Caribbean International, filed for bankruptcy recently. This led to speculation about the uncertain future of Crystal Cruises as a result. Reference: crystal cruises 2021.
Frequently Asked Questions
Who owns Crystal Cruises?
A: Crystal Cruises is a public company and as such, you can check out the information on their website.
Which cruise line is in financial trouble?
A: Carnival Cruise Line has recently been in financial trouble as they have had issues paying their employees.
Is Crystal Cancelling Cruises?
A: No, Crystal is based out of San Francisco and its cruise line is a part of Carnival Corporation.
- is crystal cruises going out of business
- crystal cruises latest update
- who owns seabourn cruises
- crystal cruises 2022
- who owns silversea cruises