Crystal Cruises Could Soon Be a Victim of Genting's Troubles
The parent company is experiencing crippling financial issues and will miss loan payments.
The travel industry is watching and waiting to see what will happen to luxury line Crystal Cruises now that its parent company Genting Hong Kong has told its creditors that it can not meet the deadline for debt payments.
The heavily in debt cruise operator announced that it has applied to wind up the company at the Supreme Court of Bermuda. This action came after the company “exhausted all reasonable efforts to negotiate with the relevant counterparties under its financing arrangements.”
The firm also said that certain businesses — including but not limited to the operations of cruise lines by Dream Cruises — shall continue in its Wednesday filing. There was no mention explicitly made about the fate of Crystal Cruises. The company did say, “however it is anticipated that majority of the Group’s existing operations will cease to operate.”
This latest action by Genting Hong Kong comes after 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.
Lu Ming, an agent at Shanghai Ocean Shipping Agency told the South China Morning Post. “It is not a surprise to see a builder of cruise ships become insolvent.”