Posted on 01/19/2022 1:14:25 PM PST by Capt. Tom
The company behind the biggest cruise operator in Asia has filed for a close of business with the Bermuda Supreme Court. Genting Hong Kong, the company that runs Star Cruises; Crystal Cruises; Dream Cruises; and shipyard MV Werften in Germany, says cash levels are at a point where it will run out by the end of January.
News had come out in the last weeks that Genting would default on $2.8 billion on financing arrangements, mainly due to the insolvency of German shipbuilding subsidiary MV Werften. As cash runs out, it could be the end for several cruise lines as the company warns that most operations could cease to exist.
Genting Unable to Pay off Debts Genting filed for business closure, or winding up, to the Bermuda Supreme Court on Tuesday. It also asked the court to appoint liquidators and propose plans to restructure the battered company.
This could include a disposal of assets, which include ultra-luxury cruise operator Crystal Cruises; mega cruise ships sailing under Dream Cruises; Star Cruises, which is well known for its popular short cruises from Hong Kong featuring large casino’s; and a shipyard in German, MV Werften, where Dream Cruises newest 9,500-passenger Global Dream is under construction.
Genting Hong Kong is expected to default on its debt payments due to a lack of cash balances, and the company has been unable to secure new funding. If the Bermuda Supreme Court does allow for a windup, the vast majority of operations would be discontinued. However, the group also announced that some activities in the Dream Cruises holding would continue:
“Certain business activities of the group, including but not limited to the operations of cruise lines by Dream Cruises Holding Limited, shall continue in order to preserve and protect the core assets and maintain the value of the group; however it is anticipated that majority of the group’s existing operations will cease to operate.”
Problems started for Genting Hong earlier this month. Due to the impact of COVID-19, Genting had been actively seeking financing to complete the construction of its newest ship. The 9,500-passenger Global Dream has been under construction at MV Werften. Genting secured an agreement for $88 million on backup funding; however, the German federal state of Mecklenburg-Vorpommern halted the deal.
Genting said Wednesday: “The Company and the Group have no access to any further liquidity under any of Group’s debt documents and the Company’s available cash balances are expected to run out on or around end of January 2022 according to the Company’s cashflow forecasts,”
What’s in Store For Crystal, Dream, and Star Cruises?
The future of the three cruise lines operating under Genting Hong Kong is uncertain at best. Although the company said some parts would continue to operate, it is unclear which assets that includes.
The news doesn’t come as a surprise. Back in August of 2020, Crystal Cruises issued a statement that addressed concerns over Genting’s financial status:
“Genting Hong Kong is engaged in a financial restructuring and fundraising exercise to address liquidity issues that resulted from its ships not operating because of COVID-19. It is important to understand that the company is not going out of business.“
“Whatever option our parent company pursues, it will allow Crystal to operate its business. Additionally, we have always been committed to honoring our contractual obligations with guests and travel partners, including the processing of refunds.”
At the time, the state of Genting Hong Kong was much more favorable than it is now. With liquidators and a windup of business, the prospects for the three cruise lines, as well as a multitude of resorts and casinos worldwide, hang in the balance.
Genting Hong Kong is a part of the Malaysian billionaire Lim Kok Thay’s casino, resort, and cruise empire. Lim Kok Thay and his family own 75.5% of Genting Hong Kong and 43% of Malaysian Genting Bhd.
I mentioned in a previous post that bankruptcy seemed to me to be coming to some of the cruise lines, and how they will hold out until the last minute.
Norwegian has been cancelling a lot of cruises and may be next.- Tom
Do they have a repo guy for cruise liners?
Yeah, the Chinese Navy.
So will I FINALLY get the money back from the cruise I had booked almost TWO YEARS AGO that NCL cancelled and held my money hostage since then, due to the CHINA VIRUS or will I lose that money?
If they file bankruptcy, what happens to the more than $5k I shelled out for that cruise for my GF and I?
Doesn’t GENTING have casinos???? I would think they are cash cows
That would depend on what country they file bankruptcy in.
Some countries will put the creditors in line first; some countries will put the workers and people in line first. -Tom
If within 60 to 90 days you can get back from your credit card company.
The cruise line situation gets worse every day.
Still hope to do a Crystal cruise some day. Very well regarded.
Gone. Bondholders first, then the bill holders.
Great. I’m just going to write it off now and be done with it. No use getting any more upset about it than I already have been the past two years.
Simple advice from a frequent cruiser, try not to book any cruise more than 2 months out, especially in current situation.
That cruise was booked more than a year before the pandemic hit. We were supposed to go June of 2020.
I bet if you painted them gray, these would make damn fine troop carriers.
Just sayin’.
I understand. Pandemic was a surprise.
But now I am booking only 1 or 2 months ahead.
prices are a bargain right now.
In november on RCCL Independence ship, we had a window cabin for $475 for 4 day cruise.
They all took out loans and promised to pay back those MILLIONS by a certain time expecting the cruising to start and continue almost as good as it had been in 2019 because of all the anxious desperate passengers just yearning to get back to cruising ...
However, they had to limit the passenger capacity and they cut their own throats by discriminating against a huge group of their customers ...
We waited expecting the so called good passengers AKA fully jabbed to get the Wu Hu Flu on board and of course eventually they did ...
OH NOOOOEZ that wasnt suppose to happen ...
I felt sorry for Carnival and stayed loyal for those first 18 months, but Karma happens kids and its not pretty ...
Suck it up ...
Is NCL holding your money as FCC (Future Cruise Credit for a new booking) ??? Did you not have an option to get the money back instead ???
I think all the cruise lines did the same thing about “Covid cancellations” Either you got all your money back right away or they held it as FCC and gave you a nice sum of OBC (On Board Credit) to use for that future cruise You had to let them know what you wanted to do...
Carnival gave $300 for cruises up to 5 days and $600 for cruises 6 days or more cancelled during 2020 and 2021 until that particular ship started sailing again in July 2020 or whenever ...some havent even yet ...
The cruises are to be taken by the end of Sept 2023 ...
They have to hold your FCC though ...
For Carnival we have until March 31 this year to apply the FCC and OBC to a cruise ...
Check with NCL to find out exactly what the rules are for them...
I’m not going on a cruise until the one I paid for actually happens. After this nightmare of an experience with NCL, I’ve been turned off to cruising.
“This could include a disposal of assets, which include ultra-luxury cruise operator Crystal Cruises; mega cruise ships sailing under Dream Cruises; Star Cruises, which is well known for its popular short cruises from Hong Kong featuring large casino’s; and a shipyard in German, MV Werften, where Dream Cruises newest 9,500-passenger Global Dream is under construction.”
given the overall climate for cruising right now, i would think the market for unfinished and sightly used mega-liners would be almost nil ...
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