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Shares of cruise operator Genting Hong Kong plunge more than 50% as it warns of defaults


A Genting Cruise Lines ship sits berthed at the Marina Bay Sands Cruise Center in Singapore, on Thursday, Nov. 16, 2017.

Ore Huiying | Bloomberg | Getty Images

Shares of embattled cruise operator Genting Hong Kong plunged more than 50% after the company announced that it may not be able to pay its debts and other obligations.

Trade resumed on Thursday following a four-day halt.

Genting said in a filing to the Hong Kong stock exchange that there’s “no guarantee that the Group will be able to meet its financial obligations… as and when they fall due.”

“If the Group is unable to meet its obligations to repay any debts as they fall due or to agree with its relevant creditors on the renewal or extension of its borrowings or any related alternative arrangements, there may be a material adverse effect on the Group’s business, prospects, financial condition and operating results,” it said in the filing.

The development came as its German shipbuilding subsidiary MV Werften filed for insolvency. It sparked a warning from Genting on Thursday that there could be potential cross-defaults on financing arrangements worth $2.8 billion — as a result of the insolvency.

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