Crystal Cruises parent company faces liquidation as cash runs out
The parent company of Crystal Cruises is out of cash and soon could shut down a significant part of its worldwide operations.
Genting Hong Kong on Wednesday said it had filed what is known as a winding-up petition with a court in Bermuda to appoint provisional liquidators who can sell off or shut down parts of its business as part of an orderly restructuring.
In a filing with the Hong Kong stock exchange, where its stock is traded, the Hong Kong-based cruise operator said it had no access to any further liquidity and expected to run out of cash around the end of January.
The company, which owns Asia-based Dream Cruises and Star Cruises as well as Crystal, has been struggling financially ever since the COVID-19 pandemic forced a worldwide shutdown to cruising in early 2020.
In the filing with the Hong Kong stock exchange, Genting Hong Kong said some of its business activities including "but not limited to" the operations of Dream Cruises would continue as its liquidators pursue a financial restructuring "in order to preserve and protect the core assets and maintain the value" of these assets during the process.
But it said it expected the majority of its existing operations to "cease to operate."
The filing did not mention the fate of Crystal specifically.
A spokesperson for Crystal on Wednesday did not immediately respond to a request for more information about the status of the line.
As of Wednesday morning, Crystal vessels continue to operate. At press time, the line's two main oceangoing ships, Crystal Serenity and Crystal Symphony, were visiting the Mexican port of Progreso and the British Virgin Islands port of Tortola, respectively. The line's new expedition ship, Crystal Endeavor, was sailing in Antarctica. Crystal also operates five river ships in Europe that don't normally sail at this time of year.
The appointment of liquidators for Genting Hong Kong does not necessarily mean that lines it operates will shut down.
In its filing with the Hong Kong stock exchange, the company said it was seeking an order from the Bermuda court that will oversee the liquidation process to authorize its liquidators to "assist the company in developing and proposing a restructuring of the [company's] financial indebtedness in a manner designed to allow the company to continue as a going concern."
Genting Hong Kong also asked the court to authorize its liquidators to "dispose of all or certain of the company's assets with a view to maximizing value and returns for creditors."
Genting Hong Kong said the liquidators would "seek to avoid a disorderly liquidation of the company."
In addition to the three cruise lines, Genting Hong Kong owns two shipyards in Germany that have been building ships for its brands. Both of the shipyards filed for insolvency last week in German courts as Genting Hong Kong's financial situation worsened.
The company also owns Resorts World Manila.
Genting Hong Kong is part of a bigger parent company that also includes Genting Malaysia, which owns most of the Resorts World casino resorts around the world. The two companies are financially separated and trade separately. The liquidation of Genting Hong Kong will not affect Genting Malaysia or its holdings.
All of the Genting companies are controlled by Malaysia tycoon Lim Kok Thay.
While based in Hong Kong, Genting Hong Kong maintains a registered office in Bermuda, which allows it to file for liquidation there.
Genting Hong Kong is the most prominent cruise company to face insolvency over the past two years as the COVID-19 pandemic takes a heavy toll on the industry. But it's not the only one.
More than half a dozen mostly small cruise operators have shut down since early 2020, citing financial troubles related to the pandemic, including Spain-based Pullmantur and U.K.-based Cruise & Maritime Voyages.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.