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KUALA LUMPUR (August 31): Genting Hong Kong Ltd (GEN HK) announced the resignation of the board of directors of the son of its majority shareholder, Lim Keong Hui. Keong Hui is the son of Tan Sri Lim Kok Thay, who is the group’s largest shareholder with a 76% stake.
According to a document filed with the Hong Kong Stock Exchange last Friday, Keong Hui resigned as CEO and Deputy CEO of GEN HK effective August 28, 2020 to dedicate more time to other business engagements.
“Mr. Lim (Keong Hui) has confirmed that he has no disagreement with the board and that there is no matter in connection with his resignation that should be brought to the attention of the shareholders regarding his resignation that should be brought to the attention of the attention of the shareholders of the company ”, says the letter.
Coincidentally, the resignation came a day after Kok Thay was re-appointed as Executive Vice President of Genting Malaysia Bhd (GENM), which operates the hilltop casino in Genting Highlands, in addition to casinos in the UK and USA. . Keong Hui is currently the deputy executive director and chief executive officer of GENM.
GEN HK, which announced a huge net loss of US $ 742.59 million for the six months ended June 30, is confident it will have enough capital to meet its financial obligations in the next 12 months if its efforts, such as cutting costs further, capital expenditures and increase fresh capital, bear fruit.
The cruise operator said in its results statement that its directors are in the process of seeking additional capital or debt financing from private investors and have received indicative letters from investors expressing interest in investing in one of the group’s cruise brands.
“The directors are discussing the terms and conditions of the financing with investors and consider that there is a reasonable prospect that the group can obtain the financing within the next 12 months from June 30, 2020,” said GEN HK. in the presentation.
GEN HK came into the limelight after it revealed that it chose to suspend all payments to creditors to conserve cash. Its share price then fell to a record low of HK $ 0.29.
As of June 30, the group’s total loans and borrowings amounted to US $ 3,260 million compared to US $ 2,739 million as of December 31, 2019. Loans that are repayable in one year amount to US $ 200.4 million.
Nonetheless, Gen HK’s board of directors is hopeful that the cruise operator will emerge from troubled waters given the efforts it is making to revive its financial health.
The group anticipates that cruise operations will resume from January 2021.
In addition to raising fresh capital, GEN HK said it is in the process of applying for long-term financing from the German federal government’s Economic Stabilization Fund (FSM) to maintain its shipyard operation in Germany. The WSF was created with the aim of reducing the damage caused to the German economy by Covid-19. Its shipyard operation bled a gross loss of $ 180.15 million.
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