Dream Cruises stops operations due to sinking financials

Cruise line Dream Cruises will cease the operation of its World Dream vessel from today as it “has become impossible” for the brand to continue due to financial restraints, said Genting Hong Kong in a statement.

According to the company,despite the continued efforts to source and introduce external funding, the group’s liquidity continues to deteriorate. Genting Hong Kong said this was due to the “absence of sustainable operational income under current challenging circumstance and in the face of mounting creditor pressure”. As such Dream Cruises is unable to invest in the further financial commitments necessary to enable the World Dream to continue to operate.

“The Company is currently assessing the impact of the cessation of operation of the World Dream, in particular its ability to meet potential refund claims,” said Genting Hong Kong.

The company also said that joint provisional liquidators have been identifying potential remediation plans and facilitating the restructuring of the group, and to date it obtained "certain emergency funding" enabling the cruise line to complete 16 scheduled cruises following the appointment of the liquidators.

A month ago, Genting Hong Kong subsidiary Dream Cruises filed to wind up its business although the parent company previously said in January 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 announcement then said: "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.”

Meanwhile, Malaysian billionaire, Lim Kok Thay, resigned from his position as chairman and CEO for Genting Hong Kong. According to Bloomberg, Lim owned 76% of Genting Hong Kong. Deputy CEO and president, Au Fook Yew, also resigned from his post. 

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