'Certain business activities of the group, including but not limited to the operations of cruise lines by Dream Cruises Holding Limited, shall continue in order to preserve and protect the core assets and maintain the value of the group; however it is anticipated that majority of the group’s existing operations will cease to operate,' Genting HK said in a filing.
Joint provisional liquidators
Applying to the Supreme Court of Bermuda, Genting HK said it had exhausted efforts to negotiate with creditors. It seeks to appoint Edward Simon Middleton and Wing Sze Tiffany Wong of Alvarez & Marsal Asia Limited in Hong Kong and Edward Alexander Niles Whittaker of R&H Services Limited in Bermuda as joint provisional liquidators.
Restructure debt to continue as a going concern or dispose of assets
The liquidators would assist in developing a debt restructuring to allow the company to continue as a going concern or, otherwise, be authorised to dispose of all or certain assets to satisfy creditors. A Bermuda hearing is set for Thursday.
Trading of Genting HK shares remains suspended on the Hong Kong Stock Exchange.
The remaining three executive directors are Tan Sri Lim Kok Thay, Colin Au and Chan Kam Hing.
MV Werften insolvency triggered default
The company had been in talks with creditors and other stakeholders for some time and went to a German court to force Mecklenburg-Vorpommern state to pay a backstop loan of €78m, warning it wouldn't be able to meet financial obligations without that. Last week its German shipyards, MV Werften and Lloyd Werft Bremerhaven, filed for insolvency and on Monday the court ruled against Genting's loan demand.
MV Werften's filing gave rise to an event of default for the Global Dream newbuild facility agreement and this, in turn, triggered cross default events under certain financing arrangements for the group that total approximately $2.7bn.
MV Werften's bankruptcy administrator has said he's prioritizing the completion of Global Dream while also exploring ideas for the long-term future of the shipyards group.
Genting HK completed a $2.6bn restructuring in June 2021 after suspending payments to creditors in August 2020 due to the pandemic's impact on operations.