Crystal Parent Genting Hong Kong Avoids Creditor Payments

Crystal Parent Genting Hong Kong Avoids Creditor Payments

The parent of Crystal Cruises and other lines, Genting Hong Kong Ltd., warned that it is halting payments to creditors in order to save cash to continue operations.

"The pandemic of COVID-19 has had and will continue to have a material impact on the group's financial position and operating results," Genting said in a statement.

The organization has indicated that its available cash would be reserved for the maintenance of essential services for the operations of the group while pursuing debt restructuring.

The group has taken cost cutting steps and is aiming to raise funds to improve liquidity, Genting said.

The statement also claimed that two subsidiaries, Dream Global One Ltd. and Dream Global Two Ltd., skipped a €3.7 million bank fee payment in connection with the financing of some ships' construction.

As of July 31, 2020, the corporation owed US$3.37 billion in total.

"In addition to the events of default that have already occurred … the board anticipates that the temporary suspension of all payments to the group's financial creditors will also likely result in events of default occurring under other finance documents of the group," the statement stated. "These events of default would give rise to the right to declare to the group's required creditors that the financial debt owed to them is immediately due and payable."

Genting Hong Kong, along with the German shipyards MV Werften and Lloyd Werft, are the parents of Crystal Cruises, Dream Cruises, and Star Cruises. Crystal was asked for comment by TravelPulse, but the luxury line did not respond immediately.

It owned two ocean ships when Genting Hong Kong acquired Crystal in 2015, and today Crystal is a multi-brand corporation with a river line, a yacht, and an adventure vessel under construction. Due to a closure at MV Werften, the latter, named Crystal Endeavor, has been postponed for about a year. Initially, it was scheduled for delivery in summer 2020.

Global Dream, another new house, was also postponed for a year until 2022. His business, Dream Cruises, resumed sailing in Taiwan on July 26 with one boat.

By December 2020, Crystal had canceled all ocean and river voyages; by Jan. 9, 2021, it suspended its yacht voyages on the Crystal Esprit.

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