Dream Cruises filed a winding-up petition with the courts in Bermuda on January 27, 2022, making it the latest part of the Malaysian holding Genting Hong Kong (GHK) to succumb to the parent company's financial troubles.
A week after GHK, currently facing insolvency on an inability to cover debts, said Dream Cruises would continue operations to “protect core assets and maintain value”, the company has been forced to change course following the appointment of provisional liquidators to the group.
In the Friday filing, GHK said that the appointment of the provisional liquidators had triggered further insolvency events of default or termination events under all of the debt instruments of Dream Cruises Holding Ltd. and its subsidiaries.
The Dream Cruises board filed a petition with the Bermuda Court for the winding up of the company and the appointment of the provisional liquidators currently working with its parent.
However, GHK said it maintained that view that a “consensual restructuring” was preferred over a terminal sinking of the business. This, it said, would present higher recoveries to all creditors and stakeholders in comparison with a value-destructive liquidation of the Dream Sub-Group, which was the likely alternative outcome.