Genting Hong Kong's Dream Cruises files to wind up

CRUISE operator Dream Cruises has filed for a winding-up application with the Bermuda Courts, its parent company Genting Hong Kong announced in a regulatory filing last week.

This comes shortly after Genting Hong Kong filed to be wound up following the insolvency of its German shipbuilding subsidiary. The troubled cruise operator also owns Star Cruises and luxury Crystal Cruises line headquartered in Miami, Florida.

Just 2 weeks ago, a Dream Cruises spokesperson said in a press statement that the operations of Dream Cruises, along with "certain business activities" of Genting Hong Kong will "continue in order to preserve and protect the core assets and maintain the value of the group".

Dream Cruises is now seeking to appoint joint provisional liquidators from Alvarez & Marsal Asia and R&H Services to develop a restructuring proposal.

Genting Hong Kong said in its exchange filing that Dream Cruises "remains valuable" and that transactions, which are likely to realise better value for the group's creditors, can be pursued.

The joint provisional liquidators are in discussions with Genting Hong Kong's and Dream Cruises' management teams in order to assess the financial condition of both companies and to identify remediation plans.

Dream Cruises, which operates cruises to nowhere in Singapore, had suspended bookings since last month and was initially due to accept bookings again on Friday (Feb 4).

Global cruise operators have been hit hard by the Covid-19 pandemic following diminishing travel demand as borders remained shut.

Genting Hong Kong suffered a record loss of US$1.7 billion for the year ended Dec 30, 2020. Its move to file for liquidation comes as Hong Kong reimposes tough pandemic restrictions in a bid to curb the spread of the virus.