Genting Hong Kong has filed to wind up its business after running out of cash as its subsidiary, Crystal Cruises, temporarily suspended operations until late April.
Genting’s announcement comes off the back of warnings last week from the company that it could face potential cross-defaults on financing arrangements worth $2.8 billion due to the insolvency of its German shipbuilding subsidiary MV Werften.
In a filing on Wednesday to the Hong Kong exchange, Genting said the company will “imminently be unable to pay its debts as they fall due,” as liquidity dries up.
The supercruise operator said the application to wind up the company was given at the Supreme Court of Bermuda, after it had, “exhausted all reasonable efforts to negotiate with the relevant counterparties under its financing arrangements.”
However, the firm said that certain businesses – including but not limited to the operations of cruise lines by Dream Cruises – “shall continue in order to preserve and protect the core assets and maintain the value of the Group.”
“However it is anticipated that majority of the Group’s existing operations will cease to operate,” the cruise operator said in its filing.
Travel Weekly reached out to Crystal Cruises to find out what this meant for the line and is yet to receive a response.
However, according to Cruise Weekly, Genting’s wind-up has led to American operator Crystal Cruises temporarily suspending operations and taking time to “evaluate the current state of business and examine various options going forward.”
Crystal Cruises CEO, Jack Anderson, said the new ongoings have been tough for the company and thanked its guests and travel advisors.
“This was an extremely difficult decision but a prudent one given the current business environment and recent developments with our parent company, Genting Hong Kong,” Anderson said.
“Crystal has been synonymous with luxury cruising for more than 30 years, and we look forward to welcoming back our valued guests when we resume operations.
“We wish to thank our guests and travel advisors for their incredible support during these ongoing challenging times.”
Crystal Serenity, Crystal Symphony, and Crystal Endeavor are all sailing currently, but will now return to port and disembark their passengers in light of the news.