Genting HK recapitalization restate US$ 2.6 billion debt to tackle Covid-19 impact



operator Genting Hong Kong says it has agreement on a “holistic recapitalization” of the group, “amendment and extension” of the group’s “material financial indebtedness of circa US$2.6 billion” after what it termed “intensive negotiations with its stakeholders”.


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 , Crystal Cruises, and 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

胡芮秋

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