SINGAPORE: Genting Hong Kong Ltd warned it may seek court assistance to safeguard its assets, after failing to secure funding to help it stay afloat following the insolvency of its German shipbuilding subsidiary.
The cruise operator plans to file for provisional liquidation with courts in Bermuda, where its registered office is, unless it receives “credible proposals for a solvent, consensual and inter-conditional restructuring solution,” it said in an exchange filing.
The company’s shares, down 49% already this year, have also been suspended from trade. Genting Hong Kong’s indirect wholly-owned shipbuilding subsidiary, MV Werften, filed for insolvency in a local court in Germany last week.
That came after salvage talks fizzled amid a dispute between German authorities and Genting, as both parties blamed the other for MV Werften’s collapse.
The Hong Kong cruise firm warned investors that cross defaults amounting to US$2.78bil (RM11.6bil) may follow.
According to MV Werften’s website, the shipbuilder has around 2,900 staff and over the past 75 years has delivered more than 2,500 vessels for deployment in the tourism sector, the Arctic region and the logistics and offshore marine industries from its shipyards in Wismar, Rostock and Stralsund. — Bloomberg