Malaysian billionaire Lim Kok Thay steps down as Genting HK CEO

Malaysian billionaire, Lim Kok Thay, has resigned from his position as chairman and CEO for Genting Hong Kong. The resignation came days after the cruise and resorts company filed to wind up its business earlier this month. A filing on the Hong Kong Stock Exchange said that Lim stepped down on 21 January this year. According to Bloomberg, Lim owns 76% of Genting Hong Kong. At the same time, deputy CEO and president, Au Fook Yew has also resigned from his post. Neither men faced any disagreement with the Board, added Genting Hong Kong. 

More than two years after the pandemic hit, Genting Hong Kong is said to be headed for liquidation after it filed an application for the appointment of provisional liquidators on 19 January. According to Genting Hong Kong, available cash balances from the company are expected to run out at the end of January 2022 and it will "imminently be unable to pay its debts". The company added that it had exhausted all reasonable efforts to negotiate with its creditors and stakeholders.

"No definitive agreements on a solvent, consensual and inter-conditional restructuring solution amongst the various parties has been reached," added Genting Hong Kong in the application. The board of the company believed that the appointment of the joint provisional liquidators was essential and in the interests of the company, its shareholders and its creditors in order to maximise the chance of success of the financial restructuring.

While Genting Hong Kong has filed to closed down its business, its operations of cruise lines by Dream Cruises Holding will continue. The Dream Cruises is said to be part of Genting Hong Kong's effort "to preserve and protect the core assets and maintain the value." However, the majority of its existing operations will cease to operate.

In early 2020, the pandemic placed a halt on travel demands and global cruise operations were one of them. Like many of its operators, Genting Hong Kong jumped aboard the "cruise to no-where" trend but still reported a US$1.7 billion loss in May, said an article from The Straits Times. A quick check by MARKETING-INTERACTIVE has found that the company's stock has dipped more than 50% since the start of 2020. 

According to the article, The Crystal Symphony was diverted to its final voyage to end in the Bahamas instead of landing on Miami as planned. The Crystal Symphony is a vessel operated by Genting Hong Kong. In fact, a US marshall and court-appointed custodian is ready to arrest the ship for US$1.2 million in unpaid fuel bills if it lands in the Florida city after a US federal district judge in Miami issued the arrest warrant for the Crystal Symphony on Thursday last week, according to Mr Stephen Simms in the article, the lead attorney representing Peninsula Petroleum Far East.

Photo courtesy :123RF

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