Genting HK to hold first creditors’ meeting to restructure debts

Genting Hong Kong hopes to reach a restructuring solution for the group with its creditors.

PETALING JAYA: Genting Hong Kong Ltd will hold its first creditors’ meeting this evening to restructure its debts after the cruise ship operator recently suspended payments to its creditors.

According to theedgemarkets, the company’s chairman and CEO, Lim Kok Thay, said the virtual meeting would discuss reaching an agreement with respect to a solvent, consensual and inter-conditional restructuring solution for the group.

Lim, who controls a 76% equity stake in Genting Hong Kong, said the board shall consider paying interest and charter payments based on what it considers to be in the best interest of its stakeholders.

Lim also said the group had settled the bank fees and charges based on pre-existing terms.

Genting Hong Kong last Thursday announced it had temporarily suspended payments to all creditors to preserve liquidity, fulfil the board’s fiduciary duties and treat its financial creditors fairly and equitably.

Its share price fell 37% to an all-time low of HK$0.30 (16 sen). It closed at HK$0.315 last Friday.

The Covid-19 pandemic has seen the company take on substantially higher losses for the six-month period ended June 30, leading to the cruise ship operator issuing a temporary payment suspension.

“The operating loss and unaudited consolidated net loss of the group for the six months ended June 30, 2020 are expected to be not less than US$300 million (RM1.25 billion) and US$600 million respectively, compared to an operating loss of US$38.3 million and an unaudited consolidated net loss of US$56.5 million for the corresponding period in 2019,” Lim said in a filing dated Aug 3.