World Dream (pictured), an Asia-Pacific-based casino cruise ship under Genting Hong Kong Ltd’s Dream Cruises brand, will cease operations on Wednesday (March 2) at the end of its current voyage. That is due to the brand experiencing “an absence of sustainable operational income”, said Genting Hong Kong in a Monday press release.
Globally the cruise line sector has been badly affected by the Covid-19 pandemic.
“Despite the continued efforts to source and introduce external funding, the group’s liquidity continues to deteriorate given the absence of sustainable operational income under current challenging circumstances and in the face of mounting creditor pressure which poses an immediate threat to the operation of the vessel,” stated Genting Hong Kong.
“In these circumstances, it has become impossible for the company to make further financial commitments necessary to enable the World Dream to continue to operate,” added the statement.
Joint provisional liquidators were appointed for Genting Hong Kong – which is also a joint venture casino operator in the Philippines – on January 20 after an application to a Bermuda court.
On February 4, those custodians were also put in charge of the Dream Cruises brand, according to Monday’s announcement. The brand is operated by Genting Hong Kong unit Dream Cruises Management Ltd.
Genting Hong Kong also noted in its Monday press release regarding World Dream: “The company understands that the cessation will cause concern to various parties, in particular the guests who paid the deposits for the scheduled sailings.”
It added: “The company is currently assessing the impact of the cessation of operation of the World Dream, in particular its ability to meet potential refund claims.”
In early January, Genting Hong Kong had said the insolvency of a German shipbuilding company it controlled would “in turn trigger cross default events under certain financing arrangements of the group,” comprising an aggregate principal amount of just over US$2.77 billion.
Later that month, Genting Hong Kong said it expected that most of the operations at its three cruise brands – Dream Cruises, Crystal Cruises and Star Cruises brands – would have to cease, as it sought to restructure.
