GGRAsia – GEN HK liquidators no plan to resume trade in its shares

GEN HK liquidators no plan to resume trade in its shares

Oct 18, 2022 Newsdesk Latest News, Rest of Asia, Top of the deck

The joint provisional liquidators appointed for Genting Hong Kong Ltd “do not intend” to submit a proposal for the company’s shares to be returned to trading on the Hong Kong Stock Exchange. The information was disclosed in an announcement by the indebted casino cruise ship operator, filed on Monday with that city’s bourse.

Last week, a Bermuda court ordered the winding up of Genting Hong Kong Ltd, and its unit Dream Cruises Holding Ltd.

“At the present time, the joint provisional liquidators do not intend to submit a resumption proposal due to, inter alia, the winding-up of the company and Dream Cruises,” stated Monday’s filing in the name of the company, signed off by the joint provisional liquidators.

Genting Hong Kong entered liquidation in January. The event was triggered by the insolvency of a German shipbuilding company it controlled, which in turn triggered cross default events related to financing arrangements of the group, comprising an aggregate principal amount of just over US$2.77 billion.

On Monday, the company confirmed that certain of its secured creditors had taken “enforcement actions over substantially all of the vessel assets” of the group. It also said the company “will not be in a position” to resume cruise operations in the future “due to … the winding-up of the company and Dream Cruises”.

Genting Hong Kong said additionally that the “disposal process” of the other major assets of the group was “at varying stages of completion”.

In late August, Genting Hong Kong’s provisional liquidators 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.

The group said its “other major assets” included its interests in certain residential and hotel properties in mainland China, and its equity interest in the Newport World Resorts casino complex, located in the Philippine capital, Manila.

In August, the provisional liquidators said they were in the “process of considering” what they termed “offers from potential purchasers” for Genting Hong Kong’s stake in Newport World Resorts, a facility formerly known as Resorts World Manila.