Genting Hong Kong to continue operations of Dream Cruises subsidiary
Lisa Kriwangko
MAINBOARD-LISTED Genting Hong Kong will continue "certain business activities", including but not limited to operations of Dream Cruises, a Dream Cruises spokesperson told BT on Wednesday (Jan 19). This is to "preserve and protect the core assets and maintain the value of the group".
Dream Cruises is 1 of the 2 lines operating cruises to nowhere in Singapore. The other is Royal Caribbean's Quantum of the Seas.
"However it is anticipated that the majority of the group's existing operations will cease to operate," Genting Hong Kong added.
Besides Dream Cruises, Genting Hong Kong subsidiaries include Star Cruises operating in the Asia-Pacific market and luxury cruise line Crystal Cruises headquartered in Florida.
The cruise operator announced on Jan 18 that it may file for provisional liquidation "in view of the group's financial conditions".
Demand for Genting Hong Kong's cruises has dropped significantly since the onset of the Covid-19 pandemic. The company posted a net loss of US$1.72 billion in 2020, widening from the US$159 million loss in 2019.
Earlier this month, the company's German shipbuilding subsidiary, MV Werften, had also filed for insolvency. The company applied to the German court for an US$88 million lifeline, but the proposal was rejected.
Shares of Genting Hong Kong have also been suspended from trading.
READ MORE:
Copyright SPH Media. All rights reserved.
