Crystal Cruises parent ready to file for liquidation
James ChappleCrystal Cruises parent Genting Hong Kong could file for provisional liquidation on Tuesday (18 January) after its shipbuilding subsidiary fell into insolvency last week.
In a note to the Hong Kong stock exchange, Genting said unless it received a credible restructuring proposal, its board would have to consider filing for provisional liquidation in Bermuda.
"The company considers that it has exhausted all reasonable efforts to negotiate with the relevant counterparties under its financing arrangements," said Genting.
Trading in the company’s shares has been halted until further notice.
Genting Hong Kong, which also owns the Star Cruises and Dream Cruises brands, filed for insolvency for its German subsidiary MVWH – MV Werften Holdings – last week after insurers refused to cover a loan on the basis of a five-year outlook for the Genting Group.
At the start of the year, Genting revealed it had been refused a previously agreed $88 million loan. It reiterated on Tuesday its inability to access this cash had created "an immediate and significant gap" in the group’s access to liquidity.
The company’s board on Tuesday said it was now of the belief the appointment of provisional liquidators was "essential" in order to "maximise the chance" of a successful restructure, to provide a moratorium on claims, and avoid a "disorderly liquidation" by any of its creditors.
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Place of registration: England and Wales.
Company number 08723341.
Registered address: 6th Floor, 2 London Wall Place, London EC2Y 5AU
