Private investors interested in a GHK-Genting Hong Kong cruise brand

   August 31, 2020 ,   Cruise Industry

GHK-Genting Hong Kong Ltd (Hong Kong China-based holding company that operates cruise, shipbuilding and resort businesses) had received indicative letters from private investors interested in one of its cruise brands (Crystal Cruises?), the company revealed in a filing to the Hong Kong Stock Exchange dated August 28.

GHK (controlled by Chinese-Malaysian billionaire businessman Lim Kok Thay) said there was a reasonable prospect that the group would be able to obtain the funding by June 2021. Genting announced the development when reporting its wider 2020-H1 net loss of USD 687,1 million (Singapore dollars S$934,2M) from USD 55,2M (2019-H1).

Earlier this month the company announced it had suspended all payments to creditors, blaming its cash crunch on the Coronavirus (COVID-19) crisis. GHK said it owed US$3,4 billion as of July 31, 2020 (cash and cash equivalents). GHK's shares dropped 58% this year, battered by travel curbs and lockdown measures across the globe.

The cruise shipping operator is also negotiating a further loan deferment of US$97M with lenders after it deferred US$85M from certain lenders before June 30, 2020. Some of GHK's creditors formed an ad hoc group to discuss a restructuring solution with the advisers of the company.

Private investors interested in a GHK-Genting Hong Kong cruise brand

GHK said the majority of its capital commitments (~USD 1,3 billion as of June 30) would be delayed "in view of suspended ship construction activities."

The company also said its shipyard operations were suspended and expected them to resume in October 2020. GHK, which owns MV Werften (3x shipyards in Germany), said it was applying for long-term funding from the Economic Stabilization Fund of the German government for its shipyard operations.

GHK added there was "a reasonable prospect" that it would have sufficient working capital and cash flows to fulfill its financial obligations as and when they fall due in the 12 months till June 30, 2021, if it succeeds "in implementing measures and plans including controlling capital expenditure and seeking fresh funding."

GHK fully owns and operates the subsidiaries (and travel brands) Dream CruisesCrystal Cruises and Star Cruises.

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