GGRAsia – Genting HK closes deals to provide firm capital, stability

Genting HK closes deals to provide firm capital, stability

Jun 29, 2021 Newsdesk Latest News, Philippines, Singapore, Top of the deck

Casino cruise ship operator Genting Hong Kong Ltd said in a Monday filing it had concluded a series of deals aiming “to provide further capital and stability to the group”.

The firm said the deals, first announced in May, involved: access to new loan facilities amounting to about US$700 million; amendment and extension of its existing financial indebtedness; and provision of “backstop funding” arrangements to address future liquidity needs.

According to Genting Hong Kong, the set of deals would “create a stable runway” for the firm “to execute a fully-funded business plan aligned with anticipated market recovery as Covid-19 restrictions ease”.

Genting Hong Kong – part of the Malaysia-based Genting group – controls the Dream Cruises, Crystal Cruises and Star Cruises brands. The firm is also an investor – via a joint-venture entity called Travellers International Hotel Group Inc, in the Resorts World Manila casino resort in the Philippines. Travellers International reported its first-quarter results last month, via its 50-percent shareholder, Philippine conglomerate Alliance Global Group Inc.

In its Monday filing, Genting Hong Kong also provided a business update on its cruise operations. It confirmed it had “voluntarily suspended” cruising activities in Taiwan since May 12, following a new Covid-19 outbreak there, and in accordance with government guidance.

“In Singapore, passenger capacity of World Dream has been reduced from 50 percent to 25 percent in May 2021 and has been returned to 50 percent since 14 June 2021,” Genting Kong said, referring to one of its vessels operating out of that city-state.

The firm added that the Hong Kong Government had permitted its Genting Dream cruise ship (pictured) to resume service at the “end of July”. But Genting Hong noted that“any outbreaks” of Covid-19 in Hong Kong “between now and then may affect the starting date”.