Genting Hong Kong’s Lim Kok Thay Resigns After Winding-up Filing

One of the biggest stumbles by a cruise operator since the pandemic began

Genting Hong Kong’s Lim Kok Thay Resigns After Winding-up Filing
Photo by Sam Fong on The Edge

Tan Sri Lim Kok Thay, the chairman and chief executive officer (CEO) of Genting Hong Kong resigned, days after the firm filed for liquidation, in one of the greatest blunders by a cruise line since the Covid-19 pandemic began. According to a Hong Kong stock exchange filing, Lim, 70, stepped down on January 21. It is also reported that Au Fook Yew, has also resigned from his positions as vice president, president, and executive director. According to the filing, both have "no issue with the board" and "no issue connected to his resignation that has to be brought to the notice of the company's shareholders." Lim's company is on the verge of going out of business, more than two years after the coronavirus outbreak began. It's a dramatic reminder of how the virus dragged once-thriving enterprises to their knees, and it could affect cruise passengers throughout the region.

As disaster looms over cruise operator Genting Hong Kong, three Malaysian banks' profits are expected to take a significant impact. According to a report, the banks are a major source of dividend income for the three state-owned entities, and large provisions due to the problems at Genting Hong Kong could have a significant impact on profits and financial institution share prices. Genting Hong Kong filed for liquidation just a week after the German government cut off its US$688 million lifeline German shipbuilding subsidiary, MV Werften, forcing it into insolvency and triggering cross-defaults on the entire group's various financing agreements totalling more than US$2.7 billion.

"The deal fell through because the Germans wanted (Lim) Kok Thay to provide a personal guarantee on the loans, which was not in the original arrangement," said a senior private equity executive close to the issue told the Straits Times.