Cruise Operator Genting Hong Kong Plunges 56% on Fears of More Defaults

Troubled cruise operator Genting Hong Kong Ltd. plunged by a record Thursday after shares resumed trading, following warnings from the company in recent days of more defaults due to the insolvency of its German shipbuilding subsidiary, Bloomberg News reported. Part of Malaysian tycoon Lim Kok Thay’s sprawling casino-to-hospitality Genting empire, the Hong Kong cruise firm’s shares slid 56% in the city. They had been suspended since last week. The company said in a filing to the Hong Kong stock exchange on Thursday that legal proceedings involving a $88 million loan facility related to its German shipbuilding unit are still pending a German court ruling set for Jan. 17. The outcome is crucial amid its broader debt crisis, after the firm already halted payments to creditors totaling $3.4 billion in August 2020 and was in default of that amount as of Dec. 31 that year. Read more.