Genting Hong Kong, parent company of Crystal Cruises, Dream Cruise and Star Cruises, said it has completed a restructuring programme after the counter parties of the company have given their final approval to the programme.

The agreement includes an €240 million subordinated secured loan facility plus a €60 million silent participation - in a form of lending which takes effect via provision of a limited-recourse equity stake to the lender in exchange for contribution of funding -  which will be provided by the Wirtschaftsstabilisierungsfonds to MV Werften Holdings Limited.

This is an indirect wholly-owned subsidiary of the company that owns shipyards in Germany and/or certain of its subsidiaries in order to fund the completion of the partially-completed Crystal Endeavor and Global Dream vessels and certain overhead costs. 

New funding, amended terms and extended maturities

Provision of a new committed €313.6 million post-delivery financing facility on substantially standard market terms in respect of the Crystal Endeavor vessel by certain existing lenders to the group also forms part of the package. 

In addition to new funding, the package includes amendments to existing agreements that amount to $981.05 million and which represents all material existing financial indebtedness of the company.

It also includes a material extension of maturity of the facilities until no earlier than 31 July 2026, a reduction in, and the harmonisation of, interest margins for up to 24 months plus  retention of all guarantees and security under the group’s existing financing arrangements, along with the implementation of appropriate limited credit enhancement arrangements including granting of new security and assignment of rights.

Furthermore, continued provision for drawdowns under existing pre-delivery financing arrangements available to the Group in order to fund completion of construction of the partially-completed Global Dream vessel.

The agreement allows  suspension of amortisation payment requirements under $1.49 billion of separate secured financing arrangements entered into by Dream Cruises, Crystal Cruises and Star Cruises entities until the earlier of (a) 29 June 2023 and (b) the date falling 24 months after the Restructuring Effective Date along with consequential adjustments to each affected amortisation schedule.

Equity financing of the company for a value of not less than $30 million  and entry by the company and certain wholly-owned subsidiaries of MV Werten into conditional, committed standby loan facilities provided by the State of Mecklenburg Vorpommern and the WSF in an aggregate amount of $118.0 million. This shall be secured by, inter alia, second and third ranking mortgages over the World Dream vessel.