Crystal Cruises’ Parent Company Faces Liquidation

Genting Hong Kong, the parent company of Crystal Cruises and Asia-based Star Cruises and Dream Cruises, has filed a petition with a court in Bermuda to appoint possible provisional liquidators who will shut down or sell off parts of its business. In addition, the company has announced that it is officially unable to pay off its debts and will run out of funds by the end of January 2022.

“The company considers that it has exhausted all reasonable efforts to negotiate with the relevant counterparties under its financing arrangements. The appointment of provisional liquidators is essential and in the interests of the company, its shareholders and its creditors in order to maximize the chance of success of the financial restructuring and to provide a moratorium on claims and to seek to avoid a disorderly liquidation of the company by any of its creditors,” Genting shared in its official Investor Relations statement. 

In relation to the current operations of its cruise business, Genting made the following statement, “Certain business activities of the Group, including but not limited to the operations of cruise lines by Dream Cruises Holding Limited, shall continue in order to preserve and protect the core assets and maintain the value of the Group; however it is anticipated that majority of the Group’s existing operations will cease to operate.” 

What will Happen to Crystal Cruises Operations? 

Crystal announced that it will suspend operations for its ocean and expedition cruise lines effective January 21 through April 29, 2022, with river cruises suspended through the end of May 2022. According to the line, “Suspending operations will provide Crystal’s management team with an opportunity to evaluate the current state of business and examine various options moving forward.” 

Crystal Serenity and Crystal Symphony are currently sailing in the Caribbean. Similarly, Crystal Expeditions’ Crystal Endeavor is presently cruising in Antarctica. These ships will complete their current voyages before stopping operations. Crystal River Cruises currently has no vessels cruising.

While the official fate of Crystal Cruises is not certain at this time, this filing does not necessarily mean that the line will cease operations. In its official filing Genting said the following on restructuring, “Following the appointment of the provisional liquidators, the Company, together with its professional advisers, will continue to work towards implementation of a consensual and interconditional restructuring of the Group to preserve value for all creditors and other stakeholders.” 

In August 2020, Genting Hong Kong announced financial difficulties and stopped making payments to creditors. This move was directly related to losses incurred due to the shut down from coronavirus. 

Additionally, we have heard some Luxury Cruise Retailers have advised their clients to hold off making payments until more information is available on the financial stability and future operation of Crystal Cruises. 

Genting Hong Kong acquired Crystal Cruises in 2015 from the line’s founding parent company, Nippon Yusen Kabushiki Kaisha.

If you have an upcoming Crystal Ocean Cruise, Crystal River Cruise, or Crystal Expedition sailing booked, we recommend contacting your travel advisor (or source of booking) regarding any questions or updates for your voyage. 

This is a breaking news story. We will continue to share information as it is released by Genting Hong Kong and/or Crystal Cruises.