Malaysian billionaire Lim Kok Thay became chairman and CEO of Genting Hong Kong shortly after sick operator Star Cruises requested liquidation of the company as the Covid 19 pandemic continues to hurt the tourism industry.
Colin O, Deputy CEO of Lim and Genting Hong Kong, resigned on Friday, three days after the company filed a petition for dissolution in Bermuda. A Hong Kong-listed cruise ship operator confirmed in a submission to regulators on Monday that the two had no disagreement with the company’s board of directors. MV Werften, a German shipyard unit in Genting Hong Kong, resigned two weeks after filing for bankruptcy due to lack of financial support from the German government and its creditors.
The company warns that the bankruptcy of a cruise shipbuilding company could lead to more than-default events under Genting Group’s $ 2.78 billion funding arrangement. Last week, Genting Hong Kong filed a liquidation petition with the Bermuda Supreme Court to appoint a co-liquidator to formulate and propose a plan to restructure the group’s debt, which may include the sale of some assets. The company said it would run out of cash available by the end of this month due to the inability to raise more funds. The pandemic has upset the tourism industry as governments around the world have imposed lockdowns and travel bans to curb the spread of the virus. The leisure travel market shows early signs of recovery and stagnant demand, but is unsuccessful as governments around the world reintroduce Covid 19 restrictions amid a new surge in infections caused by Omicron variants. Certainty is widespread.
Genting Hong Kong posted a net loss of US $ 734 million in the first half of 2021 after suffering a record annual loss of US $ 1.7 billion at the height of the Covid19 pandemic in 2020. In addition to the cruise business, Lim is also interested in casino resorts in Singapore, Malaysia, the Philippines and the United States. Genting Group also owns palm oil plantations in Malaysia. With a net worth of $ 2.6 billion, it was ranked 11th on Malaysia’s list of 50 wealthiest people released in June. According to Forbes, his real-time net worth as of Friday was $ 2.3 billion.