February 16, 2022 3 min read

Genting HK Continues to Seek Ways to Recover from Financial Disaster

Genting Hong Kong’s liquidators are investigating the possibility of potential buyers for many of the company’s assets. Although there was some discussion about re-financing assets in Asia, it seems that assets in Germany, including the huge Global Dream cruise ship, and those of Crystal Cruises, based in the US, may be sold to multiple buyers. However, at least one of the ships may not navigate too far away from the company.

Genting HK Clears the Decks

Christoph Morgen, a German lawyer, was appointed as the provisional administrator for MV Werften and stated that he would prioritize the sale of the cruise ship Global Dream, which weighs in at 204,000 tons. Many of the 2,000 employees at MV Werften could find employment in the near future if the ship’s new owner is found.

Morgen said that there were several interested parties in the Global Dream, which was 75% complete at the time MV Werften closed. Morgen said that there had been a visit to the shipyard Thursday and that more would be announced for Friday.

Bloomberg reported that Tan Sri Lim Kok Thay, the chairman of Genting Group, was the first person to express interest in purchasing the unfinished cruise ship. However, speculations arose that he would not offer a high price and that he wanted to ship the ship out of Germany to finish its construction.

Genting Hong Kong’s financing of cruise ship construction may prove to be another problem. Genting Hong Kong was able to secure a loan of €2.6 billion ($2.96 billion) from a consortium headed by KfW IPEX Bank for the construction and financing of Dream Cruises’ two new Global Class vessels.

The financing package was supported by the export credit guarantees of Germany and Finnish export credit agency Finnvera, as well as a guarantee from Germany’s Mecklenburg West Pomerania. BNP Paribas and Citibank were also part of the banking consortium, as was Credit Agricole and Credit Suisse. With so many entities involved, liquidating the assets becomes problematic.

Germany Stands Behind the Dream

Robert Habeck, Germany’s Federal Minister for Economics, announced that the government would finance the estimated €600 million ($683 million) needed to complete the construction if Morgen succeeds in attracting a buyer for the ship. He warned, however, that the buyer must be willing to fulfill Germany’s participation requirements. This was the problem that caused the collapse of the deal to save MV Werften from being renegotiated in January 2022.

Morgen reports that they are still exploring the possibilities for the Global Dream or MV Werften. He asserts that three potential buyers have been identified for the Lloyd Werft shipyard in Bremerhaven. According to reports, one of the bidders comes from the UAE and is interested in running the shipyard as before bankruptcy. Morgen speculated that Lloyd Werft would be the first to be sold, with a deal possible soon.

Crystal Cruises assets were handed over to a liquidator in the US. This liquidator is currently working to fix the company’s finances and refund future travelers who have made reservations.

Seatrade Cruise confirmed that Manfredi Léfebvre d’Ovidio, the former owner of Silversea Cruises, made an offer for Crystal Cruises to purchase it. He is still active in the travel industry despite selling the cruise line to Royal Caribbean International. However, the fate of the cruise line is uncertain because the financial institutions that held the mortgages on the ships Crystal marketed moved to take over the vessels. This effectively split the company.

Author

Erik brings his unique writing talents and storytelling flare to cover a wide range of gambling topics. He has written for a number of industry-related publications over the years, providing insight into the constantly evolving world of gaming. A huge sports fan, he especially enjoys football and anything related to sports gambling. Erik is particularly interested in seeing how sports gambling and online gaming are transforming the larger gaming ecosystem.

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