Pax Global Media
The parent company for Crystal Cruises has run out of money and may soon shut down several of its operations worldwide, according to reports.
Earlier this month, Genting Hong Kong, which owns Crystal Cruises, Dream Cruises and Star Cruises, faced an immediate debt payment of $2.78 billion USD after filing for bankruptcy following a failed bailout proceeding involving the German government.
In a filing to the Hong Kong exchange on Wednesday (Jan 19), Genting revealed that it will “imminently be unable to pay its debts as they fall due,” as liquidity dries up.
The cruise operator, which has struggled financially during the COVID-19 pandemic, said it filed an application to “wind up the company” at the Supreme Court of Bermuda, after the company “exhausted all reasonable efforts to negotiate with the relevant counterparties under its financing arrangements.”
READ MORE: Crystal Cruises owner Genting at mercy of creditors after failed bailout
As such, Genting said at Wednesday’s filing that some of its businesses — Dream Cruises — shall continue, but it did not make any mention of Crystal, CNBC reported.
“However, it is anticipated that majority of the Group’s existing operations will cease to operate,” the company said.
Genting Hong Kong, which also owns and operates the Resorts World Manila casino and resort in the Philippines, reported a US$283.3 million loss in the first half of 2021, in addition to a US$1.72 billion setback in 2020.
"We are devastated"
The update paints an uncertain future for Crystal Cruises.
In a letter to partners on Wednesday, Crystal's Jack Anderson, interim president and CEO, announced that Crystal is suspending all future ocean sailings through April 2022, as well as river cruises through May, as the team works through the situation.
Crystal’s three ships in operation – Crystal Serenity and Crystal Symphony in the Caribbean and Crystal Endeavor in Antarctica – will complete their current voyages before sailings are suspended, Anderson wrote.
Symphony’s current voyage ends in Miami on Jan. 22, Serenity in Aruba on Jan. 30 and Endeavor in Ushuaia, Argentina on Feb. 4.
“Like you, we are devastated by this action, but it is the most prudent decision in this current business environment,” Anderson wrote.
The river ships are currently in lay-up and Crystal is working through the details of laying up Serenity, Symphony and Endeavor after the conclusion of their current voyages, he wrote.
This company, now, is developing plans and timing for returning guests home.
“From the bottom of my heart, thank you for your business dedication and devotion to Crystal and your understanding in this very difficult situation. You are the heart and soul of the Crystal Family,” Anderson wrote.
In a statement later posted to Crystal's website, Anderson implied that the luxury cruise line may sail again.
“Crystal has been synonymous with luxury cruising for more than 30 years and we look forward to welcoming back our valued guests when we resume operations," Anderson wrote. "We wish to thank our guests and travel advisors for their incredible support during these ongoing challenging times.”
Guests and travel partners are currently being notified of the suspensions.
Crystal says it will provide a full refund of cruise fare paid, which will be processed automatically to the original form of payment so there is no further action on the guest’s part.
If a cruise was paid via a Future Cruise Payment or Credit, the full value will be returned to their Crystal Society profile account, the company said.
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