Luxury line, Crystal Cruises, has cancelled all its cruises into April this year, its 30th year of operations, as liquidation of its parent hangs over its head.
Genting Hong Kong is reported to have debt of US$2,8billion (R43,4bn). It owns Crystal Cruises, Dream Cruises, and Star Cruises. The collapse is largely attributed to the pandemic halting cruising.
The cruise line’s three ships, Crystal Symphony, Serenity and Endeavor (a brand-new, 200-pax Polar exploration ship), were at sea when the liquidation application was announced, but Genting Hong Kong said all three would complete their itineraries regardless.
However, Crystal Symphony is reported to have gone off-itinerary, and failed to come into Miami, where it was due, and where it was to have been arrested. A Miami judge had issued an arrest warrant for the vessel, due to US$4,6m (R71,5m) in unpaid fuel bills. Instead, Symphony diverted to Bimini, with 300 guests on board (US media reported that they were transported back to Florida by ferry). Symphony was soon joined in Bimini on January 31 by sister ship, Crystal Serenity, on only the 13th day of a now-halted world cruise, and which had been refused entry to the port of Oranjestad, Aruba.
Genting HK is owned by Lim Kok Thay and his family, most of whom have now resigned their posts. Other than cruise interests, it owns Resorts World Manila, and the MV Werften and Lloyd Werft shipyards.
Genting HK currently has three ships in its Crystal Cruises ocean-going fleet, three ships in the Dream Cruises fleet (and two – both of which accommodate 5 000 pax – under construction at the now bankrupt MV Werften yards), and four ships in the Star Cruises fleet. Star and Dream are Asian cruise specialists.
In August 2020, Genting HK sought restructuring and protection from creditors, citing Covid-19 trading conditions. The German shipyards filed for bankruptcy early in January, and parent Genting HK on January 19.
Now, Dream Cruises has filed for liquidation, dashing Genting HK’s hope of operating that line to maintain value in the company.
Asian financial media are now reporting that ripples are being felt in the Malaysian parliament as the liquidation of Genting HK could hurt Malaysian banks which lent the company hundreds of millions of dollars.
The Straits Times has reported that Maybank, RHB Bank and CIMB were among the major unsecured creditors of Genting HK, with combined exposure of US$600m (R9,3bn).
Stock analyst, Rick Munarriz, is quoted by Bloomberg saying: “Genting HK won’t be the last cruise operator to run out of money.”
