The Covid-19 outbreak that started last year created a perfect storm for Malaysian-based casino cruise operator Genting Hong Kong. The company recently acknowledged that the loss of a year’s worth of business may cause it to stop operating.
Starting in February 2020, Genting had to suspend nearly all its cruise operations. More than 500,000 jobs were lost from the cruise industry at large, along with around $23 billion in wages. Stock prices of major cruise operators fell from 70 percent to 80 percent, reported Bloomberg.
Genting resumed operations in Taiwan last July, and started sailing from Singapore in November, but at severely reduced capacities. Other trips still have not restarted, and construction of new ships have been suspended. Genting loss of US$1.7 billion for the year ending December 31, 2020.
In a filing, Genting HK said its financial liabilities exceed its assets by approximately US$3.3 billion.
In its filing, Genting said “material uncertainties” have caused “significant doubt about the group’s ability to continue as a going concern.” It has taken steps to stay afloat, such as allotment of new shares in a subsidiary, Dream Cruises Holding Ltd., asking some lenders for debt holidays and “monetizing non-core assets.”
Moreover, Genting expects “an early revival of the cruise industry in the second half of 2021” due to vaccinations, and also due to the lack of international travel. Its Crystal Cruise line in the Bahamas could resume in July.
Genting HK said it will “continue to adapt its deployment plans as we navigate our business cautiously through a highly fluid environment in 2021.”
