Billionaire Lim Kok Thay Steps Down From Cash-Strapped Operator Of Star Cruises

Malaysian billionaire Lim Kok Thay has stepped down as chairman and CEO of Genting Hong Kong just days after the cash-strapped operator Star Cruises filed to wind up the company as the Covid-19 pandemic continues to hit the tourism industry.

Thay along with Genting Hong Kong deputy CEO Colin Au resigned on Friday, three days after the company filed a winding up petition in Bermuda. Both confirmed that they have no disagreement with the company’s board, the Hong Kong-listed cruise ship operator said in a regulatory filing on Monday.

The resignations come two weeks after Genting Hong Kong’s German shipyard unit MV Werften went into insolvency after failing to secure financing support from the German government and its creditors. The company has warned that the cruise ship builder’s insolvency would trigger cross default events under Genting group’s financing arrangements amounting to $2.78 billion.

Last week, Genting Hong Kong filed the winding up petition in the Supreme Court of Bermuda and asked the court to appoint joint liquidators to develop and propose a plan to restructure the group’s debts that may include disposal of some assets. With no access to further funding, the company said its available cash balances would run out at the end of this month, it said.

The pandemic has upended the tourism industry as governments around the world implemented lockdowns and restricted travel to contain the spread of the virus. While there are early signs of a recovery and pent-up demand in the leisure travel market, uncertainties prevail as governments around the world reimpose Covid-19 curbs amid a renewed spike in infections caused by the Omicron variant.

Genting Hong Kong posted a net loss of $743 million in the first half of 2021 after incurring a record annual net loss of $1.7 billion at the height of the Covid-19 pandemic in 2020.

Besides the cruise business, Lim owns stakes in casino resorts across Singapore, Malaysia, the Philippines and the U.S. The Genting group also owns palm oil plantations in Malaysia. With a net worth of $2.6 billion, he was ranked No. 11 on the list of Malaysia’s 50 Richest that was published in June. As of Friday, his real time net worth stood at $2.3 billion, according to Forbes.