Genting Hong Kong has announced plans for a debt restructuring, citing COVID-19, which, it said, has had and continues to have a material impact on its financial position and results.

Following the suspension of sailings globally, Genting said it has undertaken a number of cost reduction and cash conservation measures to mitigate the effect of the loss of revenues from its operations.

In addition, the company has launched a fundraising effort. As of Aug. 19, however, Genting said it will require more time to assess possible additional funding.

Meanwhile, in order to preserve as much liquidity as possible and to treat all financial creditors fairly and equitably, the company is temporarily suspending all payments to financial creditors, and said it will use the remaining available cash to maintain critical services for its operations, while negotiating a restructuring.

As of July 31, 2020, Genting Hong Kong’s outstanding financial indebtedness was US$3.37 billion.