Genting’s Lim Kok Thay blames Germany for cruise operator’s demise

[superadmin]

KUALA LUMPUR: Lim Kok Thay, the former chairman of Genting Hong Kong Ltd, which slid into provisional liquidation last week, has accused the German government of walking away from a promise to provide capital to Genting’s shipbuilding unit, whose demise ultimately forced the cruise ship operator to seek court assistance to safeguard its assets.

As part of a restructuring deal last year, Germany’s former administration agreed to provide a US$620 million credit line to help MV Werften continue building a cruise ship called Global Dream, Lim said in a letter dated Jan 24 and viewed by Bloomberg News.

But when the new German government took office in December, an alternative arrangement that Lim described as “unreasonable” was proposed and a personal guarantee was sought.

The new German government also didn’t allow Genting Hong Kong to access crucial cash deposits after the Malaysian tycoon injected US$30 million as a prerequisite. The lack of funds ultimately forced the company to seek provisional liquidation, Lim said in the letter.

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