Linklaters advises Genting Hong Kong Limited on one of Asia’s largest restructuring transactions in the travel industry
Linklaters advised Genting Hong Kong Limited (GHK) on the successful restructuring of c.US$3.5bn of financial indebtedness and its c.US$1bn recapitalisation.
GHK is one of Asia’s largest cruise operators and is listed on the Hong Kong Stock Exchange. It has been impacted by the Covid-19 global pandemic and travel-related restrictions since 2020. The conclusion of the consensual holistic restructuring and recapitalisation provides GHK with a stable platform to meet the evolving demands of the post-Covid travel industry and to continue to grow its business.
The cross-border transaction was one of the most complex restructurings in recent memory in Asia. The transaction involved assets, financial creditors and governmental authorities in multiple jurisdictions including Bahamas, Bermuda, Philippines, Hong Kong SAR, Malaysia, mainland China, Singapore, USA and Germany (where GHK owns a ship building business under the MV Werften group).
As global counsel to GHK, Linklaters advised on all aspects of the transaction, including:
- negotiations with the large consortia of Asian and international banks, as well as German export credit agencies, to implement an amendment and extension of the material financial indebtedness
- securing up to €493m of new funding from Wirtschaftsstabilisierungsfonds (WSF), the economic stabilisation fund set up by the German government, to provide fresh capital for the MV Werften group
- securing €313.6m of new financing to facilitate the delivery of the vessel known as the Crystal Endeavour
- implementing a US$59m rights issuance by Dream Cruises Holding Limited.
The Linklaters team was led by Hong Kong-based restructuring partner James Warboys and comprised members across several offices and practice groups. Key team members included:
- managing associates Suzi Duncan and Kenneth Kong from the Hong Kong restructuring group
- banking partner Nathalie Hobbs advising on the financing side of the transaction alongside partner Andrew Jennens and managing associate Andrew Heller
- dispute resolution partner Melvin Sng who advised on various litigation strategies and analysis
- corporate partner Christopher Yip and managing associate George Chiu, who assisted with the capital market and regulatory advice aspects
- the Frankfurt team was led by partner Sabine Vorwerk, with support from counsel Tobias Klupsch.
The transaction is a testament to Linklaters market-leading restructuring capabilities in Asia. It also reflects the cross-border team’s ability to advise and coordinate highly complex multi-jurisdictional restructuring transactions on a fully consensual basis to preserve value for all stakeholders.