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Crystal Cruises owner considers filing for liquidation

The owner of cruise brands including Crystal Cruises is considering filing for liquidation.

Genting Hong Kong applied to have its shares suspended on the Hong Kong Stock Exchange today (Tuesday) until further notice.

The German shipyard businesses of Genting Hong Kong – MV Werften and Lloyd Werft – filed for insolvency last week.

The company is in a legal tussle over the refusal of an $88 million ‘backstop facility’ sought to address its “potential liquidity needs”.

A company statement said: “The board believes that the appointment of provisional liquidators 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 and to seek to avoid a disorderly liquidation of the company by any of its creditors.

“Following the appointment of the provisional liquidators, 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.”

A previous statement issued on January 2 said the Delta and Omicron variants of Covid “have impacted on the recovery of the group’s cruise operations”.

The lengthy January 2 statement details legal proceedings involving a $88 million ‘backstop’ loan facility from the German state of Mecklenburg-Vorpommern.

In July 2020, Genting Hong Kong revealed debts of $3.37 billion in an update to the Hong Kong Stock Exchange.

Then in the following month, Crystal Cruises issued a clarification statement after Genting Hong Kong had revealed doubts over financial restructuring plans.

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