Dream Cruises files to be wound up amid parent company woes
Cruise operator Dream Cruises has filed to be wound up, following its parent company Genting Hong Kong's woes.
This comes two weeks after the operator said it will continue operating cruises here, even after its parent company Genting Hong Kong filed to be wound up last month.
Genting Hong Kong had failed to secure funding to help it stay afloat following the insolvency of its German shipbuilding subsidiary.
Dream Cruises is one of the operators running cruises to nowhere in Singapore. It had temporarily suspended new bookings which was slated to end on Friday (Feb 4).
The other is Royal Caribbean's Quantum of the Seas.
In a statement last Friday (Jan 28), Genting Hong Kong's appointed joint provisional liquidators said Dream Cruises had filed to wind up the company with the Bermuda courts last Thursday (Jan 27).
It also added that it is seeking to appoint joint provisional liquidators to develop and propose any restructuring plans in respect of Dream Cruises' debts and liabilities.
The statement said that "a consensual restructuring will present higher recoveries to all creditors and stakeholders compared to a value-destructive liquidation of (Dream Cruises' subsidiaries), which is the likely alternative outcome".
It added that Dream Cruises' subsidiaries remain valuable, and there are "transactions which can be pursued which are likely to realise better value" for the subsidiaries' creditors, compared to a formal and terminal liquidation.
The joint provisional liquidators are in discussion with both Genting Hong Kong's and Dream Cruises' management to urgently assess the financial condition of Genting Hong Kong and Dream Cruises' subsidiaries, and to identify potential remediation plans, the statement said.
Genting Hong Kong also owns two other cruise brands - Star Cruises, which operates in the Asia-Pacific, and luxury brand Crystal Cruises, which is headquartered in Miami, Florida.
The Straits Times has reached out to Dream Cruises and the Singapore Tourism Board for comment.