Genting Hong Kong continues to sail into troubled waters with the company announcing that its Dream Cruises subsidiary has filed a petition for the winding up of the company.
Barely a week after Genting Hong Kong, currently facing insolvency on an inability to cover mounting debts, said Dream Cruises would continue operations to “protect core assets and maintain value”, the company has now been forced to change tack following the appointment of provisional liquidators to the group.
In a Friday filing, Genting Hong Kong said the appointment of those provisional liquidators had triggered further insolvency events of default or termination events under all of the outstanding debt instruments of Dream Cruises Holding Limited and its subsidiaries.
As such, the Dream Cruises board has filed a petition with the Bermuda Court for the winding up of the company and the appointment of the same provisional liquidators currently working with its parent.
However, Genting Hong Kong said it maintains that view that a “consensual restructuring” is preferred over a terminal sinking of the business. This, it said, “will present higher recoveries to all creditors and stakeholders compared to a value-destructive liquidation of the Dream Sub-Group, which is the likely alternative outcome.
“The Dream Sub-Group remains valuable, and there are transactions which can be pursued which are likely to realize better value for the Dream Sub-Group’s creditors than a formal and terminal liquidation scenario.”
Dream Cruises boasts three ships in its fleet, with sailings out of Singapore, Hong Kong and Taiwan.
Another Genting Hong Kong subsidiary, Crystal Cruises, has already suspended operations, forcing one of its ships to divert to the Bahamas mid-sailing to avoid being seized by US Marshalls at its original Florida destination.
In a separate filing, Genting Hong Kong also announced that its last remaining director, Chris Chan Kam Hing, has jumped ship. Chan has followed in the footsteps of five other former directors, including Chairman and CEO Lim Kok Thay who stepped down on 21 January.