Liquidators appointed to oversee collapsed cruise ship operator Genting Hong Kong have confirmed a sale of the company’s stake in Manila’s Newport World Resorts – formerly known as Resorts World Manila – is now on the cards.
Inside Asian Gaming understands the likely buyer is Alliance Global Group, Genting HK’s long-time joint venture partner in Newport World Resorts operating entity Travellers International Hotel Group, with discussions between the two companies already well advanced.
The recent re-branding of the former Resorts World Manila pre-empted the end of Genting’s involvement.
In a filing this week, Genting HK noted that its core remaining assets outside of cruise ship operations are its equity interest in Resorts World Manila and its interests in residential and hotel properties in China.
“These assets are unencumbered and the joint provisional liquidators are in the process of considering offers from potential purchasers,” it said.
Genting HK, which has already seen some of its cruise ships arrested and sold by third parties, also noted this week that its banking syndicates have now taken enforcement actions in relation to those ships.
However, “where the Banking Syndicates have exercised such rights and/or the vessels have been subject to arrest by other parties, the joint provisional liquidators have had no control over the conduct of the sale processes that have followed,” it said.
“In respect [vessels already mortgaged by the banking syndicates, the joint provisional liquidators note that the Group has not received (and is not expected to receive) any recoveries from any actual or anticipated disposal proceeds.
“This is because (i) the disposal proceeds from the vessel sales which have been implemented and (ii) the valuations of the remaining vessels, are substantially below the amount of secured indebtedness owed to the relevant Bank Syndicates.
“Moreover, the JPLs expect the Bank Syndicates to claim any shortfall amounts from the estate of the Company as the Company has also provided certain guarantees in respect of such secured indebtedness.”
Genting HK, with debts totalling around US$2.8 billion, first announced the appointment of liquidators in January after defaulting on loans when it was unable to drawdown a US$88 million backstop facility from the State of Mecklenburg Vorpommern for the continued operation of its Germany shipbuilding subsidiary, MV Werften Holdings Ltd (MVWH).
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