Malaysian billionaire and Genting Group head Lim Kok Thay has stepped down from his role as chairman, CEO and executive director of cruise ship operator Genting Hong Kong, hard-hit by the Covid-19 pandemic.
Lim and Genting Hong Kong deputy CEO Colin Au resigned January 21, shortly after the company filed a winding-up petition in Bermuda. At that time, a court appointed joint provisional liquidators to formulate a restructuring plan that may include disposal of some assets. Earlier this month, Genting Hong Kong’s German shipyard, MV Werften, went into insolvency.
The ongoing pandemic has dealt a serious blow to the tourism and cruise industries, an effect worsened by the Omicron variant. Lim, who remains chairman and CEO of Genting Berhad, Genting Malaysia and Genting Singapore, holds a personal 76 percent stake in the cruise ship operator, reported Forbes magazine.
The Hong Kong unit has warned that the shipbuilder’s insolvency could lead to cross default events under the group’s financing arrangements amounting to $2.78 billion. If no compromise or arrangement with creditors can be reached, the liquidators will be “authorized to dispose of all or certain of the company’s assets with a view to maximizing value and returns for creditors of the company.”
The departure of Lim and Au leaves just a single representative on the company’s board of directors, CFO Chris Chan Kam Hing. Three independent non-executive directors, Alan Smith, Ambrose Lam Wai Hon and Justin Tan Wah Joo have already stepped down. Trading of the Genting Hong Kong shares on the Hong Kong Stock Exchanges remains suspended.
