(May 23): Genting Hong Kong Ltd said it is assessing whether it will have sufficient financial resources to continue as a going concern after the pandemic nearly wiped out its cruise business.
The cruise ship operator reported a net loss of US$1.7 billion (about RM7.04 billion) and net operating cash outflow of US$629 million for the year ended December, according to a statement to the Hong Kong stock exchange on Sunday. Current liabilities exceeded assets by US$3.3 billion and borrowings with principal of US$3.4 billion were in default as of the end of 2020, it said.
The coronavirus epidemic has forced the company to temporarily suspend almost all of its cruise operations and stopped or deferred the construction of ships in its pipeline, according to the statement
Further resumption of the cruise operations is dependent on the development of the Covid-19 pandemic, including the travel restriction requirement of different countries, the company said in the statement.
The company said it may consider additional measures to improve its financial position including allotting new shares, raising liquidity through debt or equity sources, working with creditors to restructure debt, requests for debt holidays and the monetization of non-core assets.
