Posted on 08/20/2020 11:54:29 AM PDT by Capt. Tom
The parent company of Crystal Cruises, one of the world’s best-known luxury lines, is in financial trouble.
Hong Kong-based Genting Hong Kong late Wednesday said it had stopped making payments to creditors as it contended with a sharp loss of revenue due to the coronavirus crisis.
The announcement came two days after the company missed a 3.7 million euro payment of fees related to the construction of certain ships.
The payment was due from subsidiaries of the company related to new vessels, and the failure to pay the fees puts the subsidiaries into default, the company said.
In its statement, the company warned that its suspension of payments to creditors would likely result in the company being considered in default of multiple debt obligations.
“Such events of default would give rise to a right for requisite creditors of the group to declare that the financial indebtedness owed to them are immediately due and payable,” the company noted.
The company said it planned to call a meeting of creditors to discuss restructuring and refinancing options. It said it would ask creditors “to refrain from taking any enforcement action so that the stakeholders of the group can have a stable platform to negotiate and implement the restructuring.”
The company said it hoped to negotiate a restructuring of its debt with creditors. The company owed creditors nearly $3.4 billion as of July 31
(Excerpt) Read more at thepointsguy.com ...
If the no sail or no entry orders continue around the world it could spread to the larger cruise lines, in 2021 Hawaii just extended it's shutdown to October 1ST.
The Cruise Lines need income to pay off the billions owed, and he mounting daily expenses. The Cruise lines and Airlines are at the mercy of the health officials and politicians in this Corona virus pandemic.
Yes-THE EVENTS ARE IN CHARGE NOW. - Tom
Buy the ships cheap. Turn them into homes shelters and jails.
I’ve been told the economy will be fine.
In fact, I won the Eeyore Award today.
“Buy the ships cheap.”
A cheap hole that swallows up money is still a hole that swallows up money.
There are three types of businesses. Those that have closed, those that will close, and Amazon/Walmart.
Good Point.
Early Next year, 2021 will tell the story.-Tom
Genting is not a small cruise line!
That’s what it seems like.
I am only using that "smaller", in comparison to Carnival-Royal Caribbean-Norwegian Cruise Line, and MSC Cruise lines.- Tom
Turn them into homes shelters and jails.
Sad, we were hoping one day to splurge and go on a Crystal Cruise. Crystal is a high end line for those that don’t know. It looks like we may not get the chance.
“Try a Viking Cruise ?“
We were looking at taking one of theirs. I hope we get the chance. RC has been our line of choice. But the Viking River cruise has a lot appeal.
Excerpt-From Viking's Chairman Torstein Hagen, Aug.12, 2020
I have said before that we will only sail again when it is safe to do so. We are a private, closely-held company, which means we do not have to rush the decision to return to service.
It is in that spirit that we are extending our temporary suspension of operations through December 31, 2020—at which time we believe the world will be in a better position, and international travel will be less complicated.”
Thanks Tom.
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