THREE Malaysian financial institutions are set to be hit hard following financial troubles at cruise operator Genting Hong Kong, reported the Singapore Straits Times today.

The financially strapped Genting HK, which is part of Genting Malaysia’s empire of companies held by billionaire Lim Kok Thay, is facing court cases in the United States (US) over unpaid fuel bills for its luxury cruise ship, The Crystal Symphony.

The liner is set to be seized to repay US$1.2 million (RM5 million) in unpaid fuel bills if it docks in Miami, amid reports that it is being diverted to the Bahamas after a court issued an arrest warrant.

The Straits Times reported that Genting HK’s financial troubles are set to hit the profitability of three top financial institutions in Malaysia – Malayan Banking Bhd, CIMB Bhd and RHB Bank Bhd.

The report said: “Financial executives involved in the restructuring efforts at Genting HK, which is controlled by gaming tycoon Lim Kok Thay, noted that top Malaysian banks Malayan Banking, CIMB and RHB are among chief unsecured creditors of Genting HK, with a combined exposure of US$600 million (RM2.5 billion).”

Genting HK became the biggest cruise operator in the world to seek court aid to safeguard its assets during the Covid-19 pandemic.

The company said it has filed to appoint provisional liquidators with the Supreme Court of Bermuda, after exhausting “all reasonable efforts” to negotiate with creditors and stakeholders.

It reported a record loss of US$1.7 billion in May, as the pandemic ravaged the cruising industry.

Its German shipbuilding subsidiary, MV Werften, went into insolvency last week, reported Bloomberg.

Peninsula Petroleum filed a suit seeking to recoup US$4.6 million in unpaid fees for bunker fuel it delivered to three Genting ships since 2017.

A US federal district judge in Miami issued the arrest warrant for the Crystal Symphony on Thursday. – January 23, 2022.