It appears that the COVID-19 pandemic has claimed its latest victim.
So lest you’re unaware, numerous corporations have folded under the immense financial pressure of late. And though some actually managed to rebuild their fortunes…
…others, such as Genting Hong Kong, ultimately failed to make the cut.
Cruise Operator Genting Hong Kong Has Filed to Wind Up Company
Earlier today (19 January 2022), Genting Hong Kong announced that it has filed to wind up the company.
The move, the company said, came after futile efforts in regards to negotiations with its stakeholders and creditors.
Lest you’re unaware, there had been a case of insolvency pertaining to its German shipbuilding subsidiary, MV Werften. This led to defaults under Genting Hong Kong’s Global 1 credit facility, which in turn led to cross-default of some USD$2.78 billion (~S$3.75 billion).
MV Werften had reportedly gone for insolvency after a failed attempt to procure finances for its Global One mega-liner. Genting Hong Kong claimed that the German government, as well as the German federal state of Mecklenburg-Vorpommern, had held back US$336 million (~S$453 million) in funding.
Extra pre-conditions imposed in December are believed to have been the cause of the “conflict”.
Later on, the German government claimed that Genting Hong Kong had turned down its proffered assistance.
What Now?
If you’re an ardent supporter of all things cruise-related, you may be aware of Genting Hong Kong’s grand “lineage”. Apart from the Star Cruises, they also own the Dream Cruises and the Crystal Cruises lines. And that begets the question; what now for those lines?
Apparently, certain business activities will continue to run. The cruise lines by Dream Cruises Holding Limited, for instance, will not discontinue.
However, they have warned that majority of the existing operations will ultimately discontinue.
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Signs
Yet, the move may not have entirely been an unforeseen one.
Back in May 2021, Genting Hong Kong had reported a net loss of some US$1.7 billion (~S$2.3 billion) in 2020. The cause was attributed to the extensive travel restrictions amidst the pandemic.
Genting Hong Kong is also not the only corporation to have suffered from the pandemic’s repercussions.
Back in October 2020, Robinsons announced that they will be closing down their last two outlets in Singapore. This will be done through liquidation, which involves selling off their assets to gain revenue.
It signified their complete exit from the scene after 162 years of service.
Apart from weak demand, the company also cited the presence of the pandemic as a deciding factor.
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