The joint provisional liquidators for failed casino cruise business Genting Hong Kong Ltd have approved the disposal of trademarks connected to the group, to Resorts World Inc Pte Ltd, a Singapore-registered casino cruise business recently set up by Genting Hong Kong’s founder, Malaysian entrepreneur Lim Kok Thay (pictured).
The consideration involved would be US$3.5 million, with the net gain to Genting Hong Kong after costs being US$3.3 million. The transaction is for the shares of a British Virgin Islands entity called Star Market Holdings Ltd. The seller is Star Cruises Asia Holding Ltd, a unit of Genting Hong Kong.
Genting Hong Kong – part of the Malaysia-based Genting group – had developed a three-brand cruise portfolio with focus on different market segments: aside from “Star Cruises”, it also operated the “Crystal Cruises” and “Dream Cruises” brands.
The Resorts World Inc entity is held 50 percent indirectly by Mr Lim, who resigned in January as chairman and chief executive of Genting Hong Kong, and 50 percent indirectly by Malaysian conglomerate Genting Bhd, in which Mr Lim “has more than 30 percent direct and/or deemed interest,” noted the filing.
According to the filing, Star Market jointly owns, with an affiliate of Resorts World Inc, certain trademarks and intellectual property rights.
“The disposal is driven by a commercial objective to consolidate the ownership of such trademarks and intellectual property rights and to realise an asset of the group for the benefit of its creditors,” stated Genting Hong Kong.
“At the same time, it generates a considerable recovery to the group without compromising the group’s right to use such trademark and intellectual property rights,” it added. Under that agreement, Star Market will grant Genting Hong Kong “the right to use certain trademarks currently used by” Genting Hong Kong for a nominal payment of GBP1 (US$1.15).
In 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.
In August, a filing to the Hong Kong bourse said Genting Hong Kong’s joint provisional liquidators were “in the process of considering” what they termed “offers from potential purchasers” for the firm’s stake in the Newport World Resorts casino complex in the Philippine capital, Manila.
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