According to Genting Hong Kong, the set of deals would “create a stable runway” for the firm “to execute a fully-funded business plan aligned with anticipated market recovery as Covid-19 restrictions ease”.

Genting Hong Kong controls the Dream Cruises, Crystal Cruises and Star Cruises brands. The firm is also an investor – via a joint-venture entity called Travellers International Hotel Group Inc, in the Resorts World Manila casino resort in the Philippines.

In its Monday filing, Genting Hong Kong also provided a business update on its cruise operations. It confirmed it had “voluntarily suspended” cruising activities in Taiwan since May 12, following a new Covid-19 outbreak there, and in accordance with government guidance.

“In Singapore, passenger capacity of World Dream has been reduced from 50% to 25% in May 2021 and has been returned to 50% since 14 June 2021,” Genting Kong said, referring to one of its vessels operating out of Singapore.

The company added that the Hong Kong Government had permitted its Genting Dream cruise ship to resume service at the end of July. But noted that any outbreaks in Hong Kong between now and then may affect the starting date.

Editing by Rachel Hu

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Genting Hong Kong, part of the Genting group, controls the Dream Cruises, Crystal Cruises and Star Cruises.

The move came against the background of the Covid-19 that “has had, and continues to have, a material impact on the financial position and results of operation of the group”, with many cruise routes suspended.

Genting Hong Kong’s recapitalization package includes amendments to just over US$981 million of existing financial indebtedness, the group said in the latest filing to the Hong Kong Stock Exchange.

The package incorporates: “a material extension of maturity” of its loan facilities; and “reduction in, and the harmonisation of” interest margins for up to 24 months.

The terms include: “suspension of amortisation payment requirements” for just under US$1.5-billion of “separate secured financing arrangements” entered into by the group’s Dream Cruises, Crystal Cruises, and Star Cruises entities.

Such new terms would apply until either June 23, 2023 or 24 months after the implementation of the transaction, whichever falls earlier.

Other parts of the package include: a new EUR215-million subordinated secured loan facility and a EUR85 million “silent participation”, in the form of a limited-recourse equity stake to the lender in exchange for contribution of funding.

These items would supplement EUR300-million in funding for the group’s indirect, wholly-owned German shipyard, MV Werften Holdings Ltd, channelled via Germany’s economic stabilisation fund.

This would enable the completion of the “partially-completed Crystal Endeavor and Global Dream vessels and certain overhead costs”.

There would also be in the overall package, provision of a new committed EUR280 million of “post-delivery financing facility on substantially standard market terms” for the Crystal Endeavor, by “certain existing lenders” to the group.

Genting Hong Kong and or its subsidiaries will also seek to raise at least US$154 million of additional liquidity by December 31, 2021.

Editing by Rachel Hu

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