See also: Malaysian tycoon behind Genting Hong Kong puts fortune on the line, raising risk of a margin call
The Genting group has embarked on pay cuts and workforce reductions as the coronavirus pandemic halted demand for cruises while national movement restrictions kept people out of casinos and resorts. The Hong Kong cruise firm is linked to Genting Bhd through its chairman Lim, who owned 69% of the Hong Kong unit’s shares as of April 3.
Citigroup Inc. sees low risk of Genting group companies bailing out the Hong Kong cruise firm, though there’s “some reputational damage,” according to a note.
The biggest lenders to Genting Hong Kong’s syndicated loans are Malayan Banking, which fell as much as 1.8% on Friday and RHB Bank, which slid 1.6%. Genting Malaysia, which operates a casino and resort outside of Kuala Lumpur, slumped as much as 6.1%.
