Embattled Genting Hong Kong Ltd is expected to hold its first creditors’ meeting at 5pm today in a move to restructure its debts.
In a filing with the Hong Kong stock exchange, Genting HK chairman and chief executive Lim Kok Thay said in a virtual meeting that the cruise ship operator would present and explore options to reach an agreement with respect to a solvent, consensual and inter-conditional restructuring solution for the group.
Genting HK had also settled its bank fees consisting of fees and charges based on pre-existing terms, Lim said. He owns a 76% equity stake in Genting HK.
Genting HK announced Thurs that it had temporarily suspended payments to all creditors in order to preserve as much liquidity as possible, fulfil the board’s fiduciary duties, and treat all its financial creditors fairly and equitably.
Genting HK’s share price plummeted 37% to an all-time low of HK$0.30 (16 sen). It closed at HK$0.315 on Fri.
Genting HK has also appointed advisers from financial institutions to arrange a fundraising exercise.
“The funding advisors delivered a report on parties interested in the fundraising exercise to the board of directors of the company on Aug 19, 2020.
“The board has been informed that the group and potentially interested parties will require more time to assess the provision of additional funding to the group. There is currently a lack of certainty as to the outcome of the fundraising exercise,” Genting HK said in a Thurs filing.
The move to temporarily halt payments came two weeks after Genting HK issued a profit warning on substantially higher losses for the six-month period ended June 30, 2020.
“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 mil (RM1.25 bil) and US$600 mil respectively, as compared to an operating loss of US$38.3 mil and an unaudited consolidated net loss of US$56.5 mil for the corresponding period in 2019,” Lim said in a filing dated Aug 3.
The Covid-19 pandemic has had and will continue to have a material impact on the financial position and operating results of the group, Lim said in the profit warning.
