KUALA LUMPUR (Aug 18): Genting Hong Kong Ltd (Genting HK) said its joint provisional liquidators are in the process of considering offers from potential purchasers for its equity interest in Resorts World Manila, as well as its interests in certain residential and hotel properties in China.
"Shareholders, investors and potential investors are advised to exercise caution when dealing in the securities of the company," Genting HK said on Wednesday (Aug 17).
Both these unencumbered assets are other major assets of Genting HK which are held through the company’s wholly-owned subsidiary, Dynamic Merits Ltd, it said.
Genting HK’s joint provisional liquidators Edward Simon Middleton, Tiffany Wong Wing Sze and Edward Alexander Niles Whittaker had prepared the bourse filing on behalf of the Hong-Kong-listed company. Middleton and Wong are from Alvarez & Marsal Asia Ltd, while Whittaker is from R&H Services Ltd.
In the same filing, the group updated on the sale processes for its vessel assets, which are at varying stages of completion, after being the subject of certain creditor recovery actions.
Genting HK said all of its vessels, except “Genting Dream” and “Crystal Mozart”, had been mortgaged to banking syndicates KFW IPEX-Bank GmbH, Crédit Agricole Asia Shipfinance Ltd and DNB Bank ASA.
It said that “Crystal Mozart” was disposed of through private treaty sale for EUR 10.4 million (RM47.27 million). Meanwhile, a banking syndicate led by Bank of Communication Financial Leasing Co Ltd, called GDR bank syndicate, are the owners of “Genting Dream”.
In respect of the mortgaged vessels, the joint provisional liquidators noted that Genting HK has not received and is not expected to receive any recoveries from any actual or anticipated disposal proceeds.
“This is because the disposal proceeds from the vessel sales which have been implemented and the valuations of the remaining vessels, are substantially below the amount of secured indebtedness owed to the relevant bank syndicates,” they said.
The joint provisional liquidators also said they expect “the bank syndicates to claim any shortfall amounts from the estate of the company, as the company has also provided certain guarantees in respect of such secured indebtedness.”
In a table, the joint provisional liquidators indicated that Genting HK’s vessels' consideration of disposals were as follows: “Crystal Serenity” at US$103 million, “Crystal Symphony” at US$25 million, “Crystal Endeavor” at US$275 million, and “Star Pisces” at US$9.57 million.
Other vessels such as “The Taipan” is considered at US$3.96 million, “SuperStar Gemini” at US$12.17 million, “SuperStar Aquarius” at US$12.38 and “SuperStar Libra”at US$3.5 million.
No offers have yet been received for “Crystal Bach”, “Crystal Debussy”, “Crystal Mahler” and “Crystal Ravel”, they said.
The “World Dream” is currently laid up, pending sale after its arrest in Singapore by KFW IPEX-Bank, while the “Explorer Dream” is expected to be sold by private treaty at the insistence, direction, and with the consent of the banking syndicate as mortgagees.
Genting HK has 18 vessels in total, including “Dream Global One” and “Dream Global Two” that are under construction under the management of the German Administrator.
The joint provisional liquidators were appointed by Genting HK on Jan 20 to ascertain the financial conditions of the group.
It had said that the primary duty of the joint provisional liquidators is to maximise value and returns of the creditors of the company, given the severe liquidity constraints of the group.
Genting HK shares have been suspended since Jan 18 — when it applied to halt its share trade — with the company saying it would remain so until further notice. At the time it had filed to wind up the company after it had “exhausted all reasonable efforts” to negotiate with its creditors and stakeholders, according to its bourse filing.
In April, it was warned by The Stock Exchange of Hong Kong Ltd that it would be delisted if it failed to remedy issues causing its share trade suspension and resume trading by July 17, 2023. Under Hong Kong bourse’s listing rules, the stock exchange may cancel the listing of any securities that have been suspended from trading for a continuous period of 18 months.