Dream Cruises’ World Dream vessel to cease operations on Mar 2
SINGAPORE: Cruise operator Dream Cruises said that its World
Dream vessel will cease operations after its current sailing returns to shore
on Wednesday (Mar 2).
In a statement on Tuesday, Genting Hong Kong, which owns
Dream Cruises, said it "has become impossible" for it to make the
further financial commitments necessary to enable the World Dream to continue
to operate
Dream Cruises had said earlier on Jan 23 that it would
suspend bookings for an initial period of two weeks after its beleaguered
parent company, Genting Hong Kong, applied to be wound up. The suspension was
extended on Feb 4.
Customers who have paid deposits for sailings after
Wednesday may submit their claims for refunds, said Genting Hong Kong.
However, it added that it is still "assessing the
impact of the cessation of operation of the World Dream, in particular its
ability to meet potential refund claims".
"Despite the continued efforts to source and introduce
external funding, the group’s liquidity continues to deteriorate given the
absence of sustainable operational income under current challenging
circumstance and in the face of mounting creditor pressure which poses an
immediate threat to the operation of the vessel," it said.
Those who wish to submit their claims should attach their
booking confirmation and payment records and email them to joint provisional
liquidators ProjectGenting@alvarezandmarsal.com for assessment.
Dream Cruises' World Dream is one of two vessels allowed to
offer cruises to nowhere in Singapore. The other is Royal Caribbean's Quantum
of the Seas.
The joint provisional liquidators have been identifying
potential remediation plans and facilitating the restructuring of the group
including Dream Cruises since their appointment on Jan 20, said the cruise
operator.
It added that it had obtained "certain emergency
funding" which had enabled the World Dream to complete 16 scheduled
cruises after the appointment of the joint provisional liquidators.
Genting Hong Kong, which is part of Malaysia's Genting
Group, reported a net loss of US$238 million in the first half of 2021, as
operations continued to be affected by the COVID-19 pandemic. It reported a net
loss of US$1.7 billion in 2020.
The company owns the Star Cruises and Dream Cruises lines
which serve the Asia Pacific region, as well as the luxury Crystal Cruises line
based in Miami.
The cruise operator warned earlier in January that it faced
potential cross-default amounting to US$2.78 billion, following the insolvency
of its German shipbuilding subsidiary.
Its chairman and CEO Lim Kok Thay, along with deputy CEO Au
Fook Yew, resigned in January.
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