Genting Hong Kong has revealed the results of its first creditors meeting, aimed at winding up the company after its bankruptcy in January of last year.
During the meeting, the creditors of Genting HK and Dream Cruises, as well as the Contributories of Dream Cruises appointed permanent liquidators for the relevant companies as well as committees of inspection to oversee the liquidation.
In a release with the Hong Kong Stock Exchange, Genting HK signaled the toll of its final bell, noting that it would not attempt to comply with the requirements for it to stay on the stock exchange, when its 18-month maximum period of trading suspension expires on July 17th.
The group also noted that it was not planning on publishing its outstanding financial results – corresponding to both the 2021 annual and 2022 interim results ‘due to […] the winding-up of the Company and Dream Cruises’.
The January 18th meeting with creditors and contributories was the first since the group fell into bankruptcy, and follows a winding-up order by the Bermuda Court in October of last year, following its default on $2.77 billion in debt after the insolvency of its German shipbuilding unit during the pandemic.
Some 18 vessels (including two under construction) are now involved in the credit-taking action being pursued by creditors, and the group again announced that it is ‘not currently operating any cruises and […] will not be in a position to resume such operations in the future’.
The meetings culminated in the appointment of three permanent liquidators of Genting Hong Kong (currently all acting as joint provisional liquidators), and a Committee of Inspection to act with the liquidators.
Creditors for Dream Cruises also agreed to elect the same three permanent liquidators for Dream Cruises, but that no Committee of Inspection would be appointed.
This, however was contrasted by the results of the contributories’ meeting, which did vote to appoint a Committee of Inspection for Dream Cruises’ liquidation.
The appointments are all ultimately subject to the approval of the Bermuda Court and, due to the difference in outcome between the creditors’ and contributories’ meeting, the court will also decide as it ‘may think fit’.
Currently the disposal of Genting Hong Kong’s major assets ‘are at varying stages of completion’. Aside from its shipbuilding and cruise operations, the group also has an equity interest in Resorts World Manila and in ‘certain residential and hotel properties’ in mainland China.
Genting Hong Kong sailed its last voyage, with the World Dream, last year, ceasing operations on March 2nd of 2022. The $1 billion, 5,000-passenger ship is currently docked in Singapore with no bids yet received for it.
Genting HK’s former Global Dream, still under construction, was recently sold to Disney for a fraction of its worth.