On 19 January 2022, the company filed for bankruptcy in the Bermuda Islands. After reviewing its financial conditions, the company filed for liquidation on 18 January 2022.[4] The motion for liquidation was approved by Bermuda's Supreme Court on 7 October 2022.[5]
History
Genting Hong Kong was originally a subsidiary of Genting Group with a 17.8% stake owned by Genting Berhad.[6]
In 2000, Genting's Star Cruises purchased Norwegian Cruise Line, but later sold half of the company to Apollo Management in 2007.[8] A 2013 IPO of Norwegian Cruise Line further reduced Star Cruises' ownership share to 28%.[9]
In 2015, Genting purchased luxury cruise line Crystal Cruises,[10] Singaporean nightclub Zouk,[11] and a majority stake in German shipyard Lloyd Werft.[12] In November of that year, Genting also introduced Dream Cruises as a new luxury cruise brand in Asia.[12][13]
In May 2016, Genting purchased the remaining 30% of Lloyd Werft,[14] as well as Nordic Yards' Wismar, Warnemunde, and Stralsund shipyards, and combined them to form the Lloyd Werft Group.[15] In June 2016, the three ex-Nordic Yards facilities were spun out again to form MV Werften.[16]
In October 2016, Genting Hong Kong was entirely sold to the Lim Kok Thay's family-owned unit trust Golden Hope Limited as part of a family business restructuring exercise, separating it from Genting Group but retaining it under ownership of Lim Kok Thay's family.[17]
In August 2020, Genting Hong Kong submitted a filing to the Hong Kong Stock Exchange suspending all payments to creditors.[18] It cited the business impact of the COVID-19 pandemic, and the need to preserve liquidity and funds to maintain critical services for the company's operations.[19] It also requested creditors not to enforce payment and sought a plan for debt restructuring.[20][21] Following the announcement, Genting Hong Kong's share price plunged by more than 40%.[22] In response, Lim has pledged almost all of his stake in Genting Hong Kong as collateral.[23] As of 31 July 2020, it owed US$3.37 billion of debt, including US$3.7 million in bank fees that were in default.[20] In addition, Genting Hong Kong announced a 2020 first-half loss of US$742.6 million, more than ten times its 2019 first-half loss of US$56.5 million.[24]
On 28 August 2020, Lim Keong Hui, Lim Kok Thay's son, stepped down as deputy CEO of Genting Hong Kong to "devote more time to other business commitments".[25] On 1 September 2020, Genting Hong Kong sold the Singaporean nightclub group Zouk for US$10.3 million to Tulipa, a firm owned by Lim Keong Hui.[26]
On 10 January 2022, following a breakdown in talks between the German government and Genting Hong Kong in obtaining further financial support, MV Werften filed for insolvency, triggering the possibility of cross-defaults on up to $2.8 billion of financial arrangements for the Genting Hong Kong group and precipitating a fall in its share price by more than 50%.[27] Hours later, Lloyd Werft also filed for insolvency.[28] On 19 January 2022, Genting Hong Kong filed for liquidation.[29]
It was named Provisional liquidators Edward Middleton and Tiffany Wong Wing Sze of Hong Kong's Alvarez & Marsal Asia Limited and Edward Whittaker of R&H Services Limited in Bermuda to help develop and propose a restructuring proposal in relation to Genting Hong Kong's debt, including nearly US$2.8 billion that was part of financing deals it struck with creditors last June. In a Tuesday filing, Genting Hong Kong said the same liquidators have now been appointed for Dream Cruises to "among other things, develop and propose restructuring proposals relating to Dream Cruises' debt and liabilities." The company also filed a liquidation order for Dream Cruises, it hoped the restructuring would allow the company to continue as a business.[30]
In October 2022, a court in Bermuda ordered the liquidation of Genting Hong Kong and Dream Cruises.[31][32][33]
Dream Cruises was a cruise line owned by Genting Hong Kong. Genting announced the introduction of Dream Cruises in November 2015 in Guangzhou as an Asian luxury cruise line. It debuted in November 2016.[34]
Fleet
Dream Cruises operated three ships, the Genting Dream, World Dream, and Explorer Dream. Two cruise ships were still in construction before the cruise line's liquidation.
Originally ordered for Star Cruises. Construction started on 8 March 2018,[37] before the keel was laid on 11 September 2018.[38] Was to homeport in Shanghai.[39] Incomplete ship was sold to Disney Cruise Line in November 2022.[40][41] Disney has arranged to work with the shipbuilding companies LTH-Baas and Meyer Werft to complete the unfinished ship now renamed Disney Adventure by 2025.[41][42][43][44][45]
Commonly referred to by many as Global Dream II [citation needed] Construction started on 10 September 2019[46] keel laid on 9 December 2019.[47] Unfinished lower hull of ship sold for scrap after the cruise line's insolvency.[48] Scrapped as of late 2022.[49]
^ ab"Genting HK calls on creditors not to enforce payment". Travel Weekly. 20 August 2020. Archived from the original on 4 December 2020. Retrieved 21 August 2020. The financial creditors of the group will be asked to refrain from taking any enforcement action so that the stakeholders of the group can have a stable platform to negotiate and implement the restructuring.
