Genting may not be one of the cruise sector's giants, but its collapse showcases just how much the pandemic has battered that industry.
Genting Hong Kong cruise line will discontinue most of of its operations after being battered by the standstill impact on the cruise industry from the pandemic while accumulating huge amounts of debt.
In a filing this week with the Hong Kong Stock Exchange of a so-called winding up provision, Genting said it expected to run out of all cash reserves by the end of January. It will discontinue most of its operations except for some business with its Dream Cruises division.
The cruise line is part of the gambling empire of Malaysian billionaire Lim Kok Thay. The petition was filed and signed by Thay with the Hong Kong exchange after a last-ditch effort to recover $88 million Genting believed it was due from Mecklenburg-Western Pomerania state in Germany was rejected by a court there.
The collapse of Genting is the highest profile failure to date in the beleaguered cruise industry that been restricted by countries around the globe after fast-spreading, high-profile Covid outbreaks on board ships. This included an outbreak on a Genting ship last summer when 3,000 passengers were confined to quarters in Singapore on a cruise-to-nowhere trip.
Genting has been in default on $3.4 billion in debt since late 2020, according to a company report.
Trading in Genting’s stock has been suspended. The company said in its filings it would provide future updates on its situation.
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