Genting HK receives interest from investors for cruise brand
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Hong Kong
CRUISE ship operator Genting Hong Kong Ltd has received indicative letters from private investors interested in investing in one of its cruise brands, the company said in a filing to the Hong Kong Stock Exchange dated Aug 28.
The firm said that "there is a reasonable prospect that the group will be able to obtain the funding" by June 2021. It also reported a wider first-half net loss of US$687.1 million from US$55.2 million a year ago.
Genting Hong Kong said recently that it has suspended all payments to creditors, blaming its cash crunch on the coronavirus pandemic. The company said it owed a total of US$3.4 billion as at July 31. Its shares are down 58 per cent this year, battered by lockdown measures and travel curbs. The company said it has "aggressively" cut non-essential operational expenses, enacted pay freezes or reductions and lowered headcount to conserve cash.
The cruise operator is also negotiating a further loan deferment of US$97 million with lenders after it deferred US$85 million from certain lenders before June 30 this year. Some of Genting Hong Kong's creditors have formed an ad hoc group to discuss a restructuring solution with the company's advisers.
The company said the majority of its capital commitments of about US$1.3 billion as at June 30 will be delayed in view of suspended ship construction activities. It expects its shipyard operations to resume in October. The company, which owns the MV Werften shipyards in Germany, said it is applying for long-term funding from the German government's pandemic-related Economic Stabilisation Fund for its shipyard operations.
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The company said there is "a reasonable prospect" that it will have sufficient working capital and cash flows to fulfil its financial obligations as and when they fall due in the 12 months till June 30, 2021, if it succeeds in implementing measures and plans including controlling capital expenditure and seeking fresh funding.
Genting Hong Kong, which suspended almost all of its cruise operations since February 2020, expects them to resume in January 2021. BLOOMBERG
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