(CNBC) Genting Hong Kong shares fell more than 50% on Thursday after resuming trading since it was halted four days ago.
The fall in the cruise operator’s stock happened after the company said it may be unable to pay its debts when they fall due.
In a filing with the Hong Kong stock exchange, Genting said that if it is not able to pay the obligations or agree for a debt restructuring, its financial condition, business prospects, and operating results will be hurt.
News of the default by Genting came at a time its German subsidiary MV Werften filed for insolvency. Genting Hong Kong is also involved in a legal clash with the German federal state of Mecklenburg-Vorpommern, involving up to $88 million backup funding related to MV Werften.
Genting Hong Kong stopped debt payments of almost $3.4 billion in 2020 when the Covid-19 crisis hit the travel sector. The company narrowed losses for the period ending June 2021 to $238 million, from a loss of $742.6 million in the prior year.
0678: HKG is down -56.16%.
