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Cruise operator Genting Hong Kong shares plunge after default warning


Genting Cruise Lines’ ship is seen berthed at Marina Bay Sands Cruise Center (Singapore) on Thursday, November 16, 2017.

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The shares of a struggling cruise operator Genting Hong KongAfter the announcement that it might not be able pay its debts or other obligations, shares plunged by more than half.

Following a four-day suspension, trade resumed on Thursday

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

It stated in the filing that “if the Group cannot meet its obligations to pay any debts when they become due, or to agree to renew or extend its borrowings, or any other related arrangements with its creditors, it may have a material adverse impact on its business, prospects and operating results.”

This development occurred as MV Werften, its German shipbuilding division filed for bankruptcy. 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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