The Genting Cruise Lines vessel is moored at Marina Bay Sands Cruise Center in Singapore on Thursday, November 16, 2017.
Ore Huiying | Bloomberg | Getty Images
Share of embarrassed cruise operators Genting Hong Kong It plummeted by more than 50% after the company announced that it might not be able to pay its debts and other obligations.
Trading resumed on Thursday following a four-day suspension.
Genting said in a filing with the Hong Kong Stock Exchange: “There is no guarantee that we will be able to meet our financial obligations … when the deadline is reached.”
“If we are unable to meet our obligations to repay our debt, or if we are unable to agree with the relevant creditors on the renewal or extension of debt or related alternative arrangements, it could have a significant adverse effect on our business. , Outlook, financial condition, operating results. “
This development took place when MV Werften, a German shipbuilding subsidiary, filed for bankruptcy. Genting ignited a warning Thursday that a potential cross-default could occur in a $ 2.8 billion worth of funding arrangements as a result of bankruptcy.
German legal issues
Genting Hong Kong, a subsidiary of the Genting Group, is in the midst of a legal battle with the German local government.
The proceedings in progress include a $ 88 million backstop facility drawdown related to MV Werften, or backup funding for a secondary source of repayment.
Genting said in its filings that Mecklenburg-Vorpommern, Germany, withheld these funds while waiting for the next ruling on Monday.
Cruise operators managed by Malaysian tycoon Lim Kok Thay have been hit hard by the pandemic as travel stagnated due to an increase in Covid cases worldwide. Genting Hong Kong stopped paying about $ 3.4 billion in debt in 2020. According to news reports.
The company reported a net loss of $ 238 million through June 2021 compared to a loss of $ 742.6 million in the same period in 2020.
Genting Hong Kong is part of a larger conglomerate that includes: Genting Malaysia When Genting Singapore..
Among its assets, the Conglomerate owns the Resorts World Leisure Park Chain, including those in Singapore, New York City, and the United Kingdom.There are also 30 casinos throughout the UK
Genting Hong Kong shares plunge after default warning, German proceedings
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