KUALA LUMPUR (June 29): Genting Hong Kong Ltd has finalised its transaction with relevant financial creditors, partners and stakeholders under the amendment and restatement of the cruise ship operator's financial indebtedness and recapitalisation to execute a fully-funded business plan aligned with the anticipated market recovery as Covid-19 restrictions ease.
In a statement to The Stock Exchange of Hong Kong Ltd yesterday, Genting Hong Kong chairman and chief executive officer (CEO) Tan Sri Lim Kok Thay said the objective of the transaction is to provide further capital and stability to the group to create a stable runway to execute its business plan.
"As mentioned in the announcement [on May 7, 2021], the consummation of the transaction was subject to execution of long-form documentation and satisfaction of certain commercial and legal conditions precedent specified therein.
"The company and its advisers had been working diligently towards achieving the consummation of the transaction, and the board of directors of the company is pleased to announce that consummation of the transaction occurred on June 28, 2021 (the restructuring effective date),” Lim said.
Lim said key terms of the finalised transaction involve new money facilities of about US$700 million (about RM2.9 billion) and completion of the group’s recapitalisation besides the amendment and extension of the company’s material financial indebtedness of around US$2.6 billion as the cruise ship operator continues to contend with Covid-19-driven global movement restrictions to curb the pandemic.
On Genting Hong Kong, Lim said the group continues to operate under uncertainties caused by many pandemic-related factors that hinder the speed and extent of resumption of the group’s sailing activities across its branded fleet.
"We have voluntarily suspended Explorer Dream cruising activities since May 12, 2021 with the new Covid-19 outbreak in Taiwan, and the government has indicated that cruises can only resume when the current level 3 alert is lowered to level 2. In Singapore, passenger capacity of World Dream was reduced from 50% to 25% in May 2021, and has been returned to 50% since June 14, 2021.
"While the Hong Kong government has permitted Genting Dream to resume service at the end of July, any outbreaks between now and then may affect the starting date.
"The group is working actively to deploy passenger cruising opportunities across all potential routes, acknowledging that it may face unforeseen disruptions and incur additional start-up costs in this uncertain process. Meanwhile, the board shall continue to closely monitor the group’s liquidity position and explore strategic options available to the group to further improve the group’s liquidity and competitive positions," Lim said.
Genting Hong Kong’s statement came after the christening of the group’s Crystal Endeavor ship in Germany on Saturday.
In a statement today, Genting Hong Kong said the 20,200 gross registered tonnage (GRT) luxury expedition yacht accommodates 200 guests.
"She (Crystal Endeavor) combines the finest attributes of the award-winning Crystal