Bermuda Court orders Genting Hong Kong to wind up business

The Bermuda Court has ordered Genting Hong Kong to wind up business, symbolising the last chapter in the history of Asia’s largest cruise operator as an independent business entity.

According to a filing uploaded on Hong Kong Stock Exchange website on 10 October, the company and its subsidiary Dream Cruises were ordered to be wound up by the Bermuda Court on 7 October 2022 in accordance with section 161 of the Companies Act.

“In addition, the joint provisional liquidators (JPLs) and joint provisional liquidators of Dream Cruises (DCHL JPLs) have been ordered to continue as joint provisional liquidators of the Company and Dream Cruises, respectively, and their powers shall not be limited,” the statement read.

Edward Middleton and Tiffany Wong Wing-sze of Alvarez and Marsal Asia, and Edward Whittaker of R&H Services will continue to be the joint provisional liquidators of Genting Hong Kong and Dream Cruises, the statement added. Trading of the company’s shares will remain suspended.

Back in February this year, Genting Hong Kong subsidiary Dream Cruises has filed to wind up its business although the parent company previously said that the cruise operation would continue.

In an announcement on the Stock Exchange of Hong Kong, Genting Hong Kong said it had filed a petition in the Bermuda Court for the appointment of joint provisional liquidators (JPL) of the company. The JPL application had triggered further insolvency events of default or termination events under all of the outstanding debt instruments of Dream Cruises and its subsidiaries.

It added that a consensual restructuring 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 realise better value for the Dream Sub-Group’s creditors than a formal and terminal liquidation scenario," the announcement said.

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