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Crystal: The company is not going out of business

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Crystal issued a statement late Thursday to calm fears about its viability as parent Genting Hong Kong pursues a restructuring.

'Committed to honoring contractual obligations'

'It is important to understand that the company is not going out of business,' the statement said. 'Whatever option our parent company pursues, it will allow Crystal to operate its business. Additionally, we have always been committed to honoring our contractual obligations with guests and travel partners, including the processing of refunds.

'While we have extended our suspension of global voyages until the end of the year, we are working with government and health authorities in our key markets to resume sailing when it is safe to do so and we look forward to welcoming our guests back on board at that time.'

Genting HK is in a cash crunch due to COVID-19's impact on its business, which also includes Star Cruises, Dream Cruises and the MV Werften shipyard cluster. 

$3.4bn debt

The company suspended payments to financial creditors as it pursues a restructuring. Genting HK owed a total of $3.4bn as of July 31.

In a recent profit warning, the company said it expects to report a first half $300m operating loss compared to the $38.3m operating loss in the first six months of 2019, while the anticipated $600m net loss compares to the $56.5m loss in the first half a year ago.

At the same time, the company said newbuilds Crystal Endeavor and Global Dream will be delayed by about a year.

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