Genting Hong Kong has proceeded with its plan unveiled yesterday to file for provisional liquidation with the Supreme Court of Bermuda, where the company is domiciled and it has asked the court to appoint joint provisional liquidators (JPL) to commence restructuring of its business.

"As 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, as a result of (a) ongoing operational expenditure; and (b) potentially required payments of certain liabilities that are expected to be made on or before that date, the Board considers that the Company will imminently be unable to pay its debts as they fall due,” Genting Hong Kong said in a statement.

It said the appointment of the JPLs is essential and in the interests of the company, its shareholders and its creditors in order to maximise the chance of success of the financial restructuring and to provide a moratorium on claims by any of its unsecured creditors and to seek to avoid a disorderly liquidation of the company. 

“Following the appointment of the JPLs, the Company, together with its professional advisers, will continue to work towards implementation of a consensual and inter-conditional restructuring of the Group to preserve value for all creditors and other stakeholders,” Genting Hong Kong said.

Certain business activities of the group, including but not limited to the operations of cruise lines by Dream Cruises Holding Limited, would continue in order to preserve and protect the core assets and maintain the value of the group; however it is anticipated that majority of  its existing operations will cease to operate, Genting Hong Kong said.

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Genting Hong Kong, whose MV Werften shipbuilding subsidiary fell into insolvency last week, is planning to file for provisional liquidation to enable it to commence corporate restructuring, the company said in a statement.

“In view of the Group’s financial conditions, unless the Company receives credible proposals for a solvent, consensual and inter-conditional restructuring solution, the Board will potentially proceed with a filing of provisional liquidation of the Company with the competent court of Bermuda on 18 January 2022 (Bermuda time) (the “Provisional Liquidation”),” Genting Hong Kong said.

Genting Hong Kong owns Dream Cruise in part and is the sole owner of Star Cruise and Crystal Cruises (photo)

The appointment of provisional liquidators would be essential and in the interests of the company, its shareholders and its creditors in order to maximise the chance of success of the financial restructuring and to provide a moratorium on claims and to seek to avoid a disorderly liquidation of the company by any of its creditors, it pointed out. 

Following the appointment of the provisional liquidators, the company, together with its professional advisers, would continue to work towards implementation of a consensual and inter- conditional restructuring to preserve value for all creditors and other stakeholders.

"As at the date of this announcement, the Company and its professional advisers are in preparation of the relevant legal procedure. The Company will make further announcement(s) regarding any updates on the Provisional Liquidation in accordance with the Listing Rules,” Genting Hong Kong said.

A number of independent, non executive directors and members of audit and remuneration committees had resigned earlier today, while trading in the shares of the company on Hong Kong Stock Exchange was suspended as well, it noted.