Genting Hong Kong says it's out of cash, files to wind up

Crystal Cruises' new expedition ship, the Crystal Endeavor. Photo Credit: Tom Stieghorst
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Genting Hong Kong, parent company of Crystal Cruises, has filed to wind up its operations, saying that it will run out of cash by the end of this month and has no access to further liquidity.  

In a regulatory filing, Genting Hong Kong said that "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."

Crystal said Wednesday that it will pause operations, giving its management team "an opportunity to evaluate the current state of business and examine various options moving forward."

The filing comes a day after Genting Hong Kong warned it would file for provisional liquidation if it failed to secure funding after the bankruptcy of its German shipbuilding subsidiary.

Genting Hong Kong also owns Asian lines Star Cruises and Dream Cruises, and the German shipyards MV Werften and Lloyd Werft, which filed for insolvency last week, at which point Genting said it was at risk of defaulting on financing arrangements totaling about $2.78 billion. 

The filing on Wednesday said that Genting had petitioned the wind-up from a court in Bermuda, where the company is registered, saying its available cash balances are expected to run out near the end of January and that Genting Hong Kong "will imminently be unable to pay its debts as they fall due."

Genting Hong Kong requested that the court appoint provisional liquidators to "develop and propose any restructuring proposal" that will allow the company to "continue as a going concern."

The company's shares have been suspended from trading on the Hong Kong Stock Exchange since Jan. 7.

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