Resorts World buys cruise trademarks from Genting HK unit

By TIN Media | Asean News Published 2 weeks ago on 15 September 2022
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MALAYSIA:

In a planned transaction, Star Cruises Asia Holding Ltd, a 100%-owned subsidiary of Genting Hong Kong Ltd (Genting HK), will sell its entire stake in Star Market Holdings Ltd to Genting Bhd's 50% indirectly-owned associate Resorts World Inc Pte Ltd for US$3.5 million (RM15.84 million). The transaction aims to, among other things, consolidate the ownership of such trademarks and intellectual property rights under a single entity.

"Star Market and a subsidiary of Resorts World jointly own many trademarks and intellectual property rights.

In a statement to The Stock Exchange of Hong Kong Ltd (HKEX) on Tuesday night, Genting HK stated that the sale of Star Market was motivated by a business goal to consolidate the ownership of such trademarks and intellectual property rights and to realize an asset of the group (Genting HK) for the benefit of its creditors (Sept 13).

The business claimed that its joint interim liquidators believed the terms and conditions of the disposal to be reasonable, fair, and in the best interests of the business as a whole, as well as its creditors and stockholders.

The hospitality and leisure cruise industries were severely impacted by Covid-19 lockdowns, and the Hong Kong-listed firm is currently undergoing restructuring as a result.

To maximize the value and returns for the company's creditors, a winding-up petition was filed against Genting HK, and joint provisional liquidators (JPLs) were appointed.

In an HKEX filing on July 19, Genting HK reported that "virtually all" of the group's vessel assets have been subject to enforcement procedures by its secured creditors.

"Creditor recovery actions include select secured creditors of the group taking enforcement measures against essentially all of the group's vessel assets. To maximize the payouts to the group's creditors, the JPLs have been working with these secured creditors and other important stakeholders to find suitable investors who would be interested in buying the vessels and other group assets.

The sale processes for these assets were described as being in various degrees of completion.

Meanwhile, Genting HK is unable to release its annual and unaudited results for 2021 due to ongoing cash issues as well as the absence of an audit committee. Trading in the company's shares has been halted since January 18.

Shares of Genting were down three sen or 0.66% at RM4.52 at the midday break on Wednesday, giving the company a market capitalization of RM17.52 billion.


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