Genting Hong Kong shares fall after default warning, lawsuit in Germany

The Genting Cruise Lines cruise ship docks at the Marina Bay Sands Cruise Center in Singapore on Thursday, November 16, 2017.

Huying ore | Bloomberg | Getty Images

Shares of beleaguered cruise company Genting Hong Kong plunged more than 50% after the company announced that it may not be able to pay its debts and other obligations.

Trading resumed on Thursday after a four-day hiatus.

Genting said in a filing to the Hong Kong Stock Exchange that There is no guarantee that the Group will be able to meet its financial obligations… as they fall due.

“If the Group is unable to meet its obligations to pay any debts as they fall due or agree with its relevant creditors to renew or extend its loans or any related alternative arrangements, there may be a material adverse effect on the Group’s business, outlook, financial condition and operating results.”

This development came when German shipbuilder MV Werften filed for bankruptcy. And it triggered a warning from Genting on Thursday that there were potential cross-defaults on its $2.8 billion financing arrangement – as a result of bankruptcy.

Legal problems in Germany

Genting Hong Kong, a subsidiary of the Genting Group, is in the midst of a court battle with a regional government in Germany.

Ongoing legal action includes the withdrawal of an $88 million back-up facility – or standby financing of a secondary source of repayment – linked to MV Werften.

In its filing, Genting stated that the German federal state of Mecklenburg-Vorpommern had withheld the funds, pending the next ruling on Monday.

The cruise company, controlled by Malaysian businessman Lim Kok Tai, has been hit hard by the pandemic, with travel halted due to a spike in global Covid cases. Genting Hong Kong has suspended nearly $3.4 billion in debt in 2020, according to news reports.

The company posted a net loss of $238 million for the period ending June 2021, compared to a loss of $742.6 million for the same period in 2020.

Genting Hong Kong is part of a larger conglomerate that also includes Genting Malaysia and Genting Singapore.

Among its assets, the group owns the Resort World theme park chain, which includes those in Singapore, New York City, and the United Kingdom. It also has 30 casinos across the UK

Source link

Denial of responsibility! is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – The content will be deleted within 24 hours.
Andrew Naughtie

News reporter and author at @websalespromo