Genting Hong Kong Ltd has completed its transaction with relevant financial creditors, partners, and stakeholders under the amendment and restatement of the cruise ship operator’s financial indebtedness and recapitalisation to execute a fully-funded business plan aligned with the expected market recovery as Covid-19 restrictions ease. Genting Hong Kong chairman and chief executive officer (CEO) Tan Sri Lim Kok Thay said in a statement to The Stock Exchange of Hong Kong Ltd yesterday that the transaction’s goal is to provide the group with additional capital and stability so that it can execute its business plan on a stable runway.
“As stated in the announcement [on May 7, 2021], the transaction’s completion was contingent on the execution of long-form documentation and the fulfillment of various commercial and legal conditions precedent set forth therein.
“The company and its advisers worked diligently toward completing the transaction, and the board of directors of the company is glad to announce that the transaction was completed on June 28, 2021 (the restructuring effective date),” Lim stated.
Lim said in a filing yesterday that the finalised transaction includes new money facilities of around US$700 million (about RM2.9 billion) and the completion of the group’s recapitalisation, as well as the amendment and extension of the company’s material financial indebtedness of around US$2.6 billion, as the cruise ship operator continues to deal with Covid-19-driven global movement restrictions.
The global tourism industry, which includes airlines, hotels, and travel agents, has been harmed by such limitations on movement.
“We have voluntarily suspended Explorer Dream cruising activities since May 12, 2021 with the new Covid-19 outbreak in Taiwan, and the government has indicated that cruise operations will resume,” Lim said of Genting Hong Kong. The passenger capacity of the World Dream in Singapore was reduced from 50% to 25% in May 2021, and has been restored to 50% starting June 14, 2021. While the Hong Kong government has approved Genting Dream’s resumption of operation for the end of July, any outbreaks that occur between now and then could delay the commencement date.
“The group is actively striving to deploy passenger cruising options over all feasible itineraries, understanding that this unpredictable process may result in unforeseen interruptions and increased start-up expenses.” Meanwhile, the board will continue to closely monitor the company’s cash position and consider strategic options to strengthen the company’s liquidity and competitiveness,” Lim said.
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