Genting Hong Kong Closes Crucial Deals to Provide Stability
Genting HongKong Ltd. has recently finalized new deals that aim “to provide further capital and stability to the group.”
The group stated that the deals would help the firm in market recovery efforts as COVID-19 restrictions are reduced. Uncertainties from the pandemic are currently hindering the resumption of sailing activities across Genting’s different locations.
So, the new deals would create a “stable runway” for the firm to execute recovery plans.
The deals were first announced in May and included new facilities amounting to US$700million on loan. It also covered the amendment of the firm’s existing indebtedness, plus providing “Backstop funding” regarding any future liquidity needs.
Furthermore, the group said that its board was able to finalize a transaction from June 28 pertaining to the consummation of a $2.6 billion loan and recapitalization scheme.
Genting Hong Kong controls the Dream Cruises, Star Cruises, and Crystal Cruises brands. Several of its locations have been affected by the COVID-19 restrictions.
On Monday, the group also provided updates on its operations. In Taiwan, it confirmed that they had suspended cruising activity according to government guidance from May 12 due to a new outbreak of COVID-19.
In Hong Kong, they have received permission for their Dream Cruise Ship to resume activity at the end of July, subject to the COVID-19 situation until then. The Hong Kong government stated that the cruises could operate when the alert drops to at least level 2.
However, in Singapore, World Dream has reduced capacity to 25 percent from 50 percent in May and then increased back to 50 percent after June 13.
According to a statement released by Genting Hong Kong, the company claims it is actively working to provide cruising opportunities for passengers on all potential routes. They, however, noted that the projects could face disruptions and additional start-up costs, given the circumstances.