Genting Hong Kong suspends payments, two subsidiaries default on payments and more could follow

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 20 August 2020 20 August 2020

Genting Hong Kong, the cruise shipping cruise ship building to resorts group, said it has decided to suspend payments to save cash as it is in the process to restructure its finances and raise fresh funds.

Meanwhile, two subsidiary companies of the group have defaulted on certain payments to banks while the suspension of payments could trigger more defaults, which again could allow creditors to declare all debt, totaling at US$3.37 billion, due and payable immediately, the company said.

Genting Hong Kong owns Dream Cruise, Star Cruises and Crystal Cruises plus the MV Weften shipbuilding company in Germany and a resort in the Philippines.

“As the Fund Raising Exercise may or may not be consummated, the Board wishes to announce that, it has, after careful consultation with its legal and financial advisers, concluded that in order to preserve as much liquidity of the Group as possible and to fulfill the Board’s fiduciary duties and to treat all its financial creditors fairly and equitably, the Company should temporarily suspend all payments to the Group’s financial creditors (including interest and charter payments),” Genting Hong Kong said in a statement.

“On 17 August 2020, Dream Global One Limited and Dream Global Two Limited (being subsidiaries of the Company, together the “Subsidiaries”) were required to pay certain fees amounting to approximately EUR 3.7 million (in aggregate) in connection with the financing of the construction of certain ships (the “Bank Fees”). The Company guarantees the obligations to pay the Bank Fees. As of the date of this announcement, the Bank Fees have not been paid. Such non-payment constitutes an event of default under the finance documents of the Subsidiaries (the “Global Finance Documents”),” the company continued.

In addition to the defaults that have already occurred under Global Finance Documents, the company said its board anticipates that the temporary suspension of all payments to the group’s financial creditors will also likely result in events of default occurring under other finance documents of the group.

“Such events of default would give rise to a right for requisite creditors of the Group to declare that the financial indebtedness owed to them are immediately due and payable. As of 31 July 2020, the outstanding financial indebtedness of the Group is at US$3.37 billion,” the company said.

The Genting Hong Kong board will meet on 28 August to approve the accounts for six months to 30 June 2020. The company has issued two profit warnings since March as the Covid-19 pandemic has forced it to suspend operations.

MSC Grandiosa is now the largest cruise ship back in service

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 17 August 2020 17 August 2020

MSC Grandiosa became the first ship from the MSC Cruises fleet to welcome guests back and the first ship to implement the Company’s health and safety protocol. The first guests began embarking MSC Cruises’ flagship in the port of Genoa, Italy yesterday morning, arriving at the cruise terminal according to their allocated time slots and followed the new universal screening procedures according to the Company’s own health and safety protocol, which includes a temperature check, medical review of a health questionnaire and an antigen COVID-19 swab test for every guest prior to boarding. After completing these steps and having received the results of the test while in the terminal, guests that were fit to travel then embarked the ship according to the new health and safety procedures, which includes sanitation of both hand and hold luggage.

All guests were given a complimentary MSC for Me wristband, which provides guests with contactless options while on board such as opening their staterooms or making payments. These wristbands will also help to facilitate proximity and contact tracing, if needed. Additionally, over the past several weeks, all crew members have gone through similarly stringent health screening measures, which included 3 COVID-19 tests in various phases as well as a period of isolation before commencing their duties. Each crew member will then be regularly tested and their health monitored.

Gianni Onorato, MSC Cruises’ CEO commented, “It is a real pleasure for me to be here and sail on board the first of our ships to return to service and to be able to welcome back our guests. Our main goal during these last months has been to put in place the right measures that will protect the health and safety of our guests, crew and the communities we visit. But at the same time, we have worked to ensure that we are able to provide our guests with a cruise holiday that they can enjoy and still experience all of the elements that they know and love from entertainment and activities on board through to protected ashore visits.”

Following the embarkation of the new guests today in Civitavecchia, more guests will also embark in the ports of Naples and Palermo. The ship will then call at Valetta in Malta before returning to Genoa on Sunday. Along the ship’s itinerary, guests will be able to go ashore to enjoy the different ports of call, but only as part of an MSC Cruises shore excursion as an added level of protection, so that their experience ashore follows the same high standards of health and safety as on board. Today, some of the guests will visit Rome — taking in all the attractions of the “Eternal City” — while traveling on sanitized transfers with social distancing in place, accompanied by tour guides and drivers who are also adhering to strict health and safety measures.

For this initial phase of the restart of operations, the two MSC Cruises’ ships operating in the Mediterranean — the second being MSC Magnifica in the East Mediterranean — for the current summer season will initially only welcome guests who are residents in Schengen countries. In the U.S., MSC Cruises will only restart operations when the time is right, following approval by the CDC and other relevant authorities across the region in observance of their requirements and guidelines.

MSC Grandiosa is currently the largest cruise ship back in service.