Genting Hong Kong, parent company to Crystal Cruises and two of Asia's largest cruise lines, suspended payments to creditors on almost $3.4 billion, citing the impact of the Covid-19 pandemic.
Genting, which owns Asia-based Dream Cruises and Star Cruises in addition to Crystal, told the Hong Kong stock exchange on Wednesday that it would "temporarily suspend all payments to the Group's financial creditors."
News of the suspension sent Genting's stock price down more than 40% on Thursday.
The company said that it would reserve its remaining available cash "to maintain critical services" for its operations. Genting said the Covid-19 pandemic "has had and will continue to have a material impact on the financial position and results of operation of the Group" and that it has "undertaken a number of cost reduction and cash conservation measures to mitigate the effects of the resultant loss of revenues from its operations."
Crystal recently canceled the remainder of its 2020 season for its ocean and river cruises.