Genting HK: Investors show interest in cruise brand

Genting HK

Cruise ship operator Genting Hong Kong has received indicative letters from private investors interested in investing in one of its cruise brands, the company said in a filing to the Hong Kong Stock Exchange dated Aug 28.

The firm, controlled by Malaysian tycoon Lim Kok Thay, said “there is a reasonable prospect that the group will be able to obtain the funding” by June next year. The company announced the development when reporting a wider first-half net loss of US$687.1 million (S$934.8 million) from US$55.2 million a year ago.

Genting Hong Kong said last month that it had suspended all payments to creditors, blaming its cash crunch on the coronavirus pandemic. The company also said it owed US$3.4 billion as of July 31. Its shares are down 58 per cent this year, battered by lockdown measures and travel curbs linked to Covid-19 across the globe.

The cruise operator is also negotiating a further loan deferment of US$97 million with lenders after it deferred US$85 million from certain lenders before June 30 this year, according to the filing. Some of Genting Hong Kong’s creditors have formed an ad hoc group to discuss a restructuring solution with the company’s advisers.

The company said the majority of its capital commitments of about US$1.3 billion as of June 30 will be delayed in view of suspended ship construction activities.

[bloomberg]

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