The collapse of its MV Werften shipbuilding unit may have material negative consequences for the Genting Hong Kong group, the company said in a statement.
“Subject to the outcome of the hearing of the Company’s application on 11 January 2022 (Germany time) with respect to the State M-V Backstop Facility and taking into account the relevant counterparties’ refusal to permit the Group to access disbursements totaling approximately US$336,000,000, there is no guarantee that the Group will be able to meet its financial obligations under its financing arrangements as and when they fall due,” the company said.
Genting Hong Kong said it considers that it has exhausted all reasonable efforts to negotiate with the relevant counterparties under its financing arrangements. “If the Group remains unable to meet its obligations to repay any debts as they fall due or to agree with its relevant creditors on the renewal or extension of its borrowings or any related alternative arrangements, there may be a material adverse effect on the Group’s business, prospects, financial condition and operating results,” it said.
The board is currently in discussion with its bankers, its shareholder partner in Dream Cruises Holding Limited, an indirect non-wholly owned subsidiary of the Company, and its professional advisers to evaluate options available to the Group, it pointed out.
Genting Hong Kong’s cruise brands comprise Dream Cruises and Star Cruises in Asia and Crystal Cruises, which has its head office in Los Angeles.
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The crisis at MV Werften took a turn for the worse as a German media report said the company had filed for bankruptcy.
“A dramatic turnaround in the struggle for the financially troubled MV shipyards: The management announced an internal report that it would file for bankruptcy,” the Norddeutsche Rundfunk (NDR) public broadcaster reports on its website.
“The Schwerin District Court confirmed receipt of the application. In the afternoon, the country's finance committee will hold a special meeting to discuss how to proceed,” the report said.
CruiseBusiness.com has been unable to obtain a comment from the shipbuilder that is part of the Genting Hong Kong group or the court..
"A bitter day for all of us, but we have to face this fact,” the management's statement said, according to NDR.
“The insolvency was applied for at noon at the Schwerin District Court, as the court confirmed. In talks between the federal government, the state of Mecklenburg- Vorpommern and the owner Genting from Hong Kong, no solution for further financing was found, said a shipyard spokesman. However, bankruptcy does not have to mean the final end - that could also mean that it will continue,” NRD reported.
