03 Sep Zouk Company sold to Genting boss’s son for RM42 million
Genting Hong Kong, struck hard by the Covid-19 pandemic, sold a HK$79.3 million (RM42.4 million) to its affiliate, the Zouk Company, operator of the iconic nightclub. As part of efforts to offload non-core assets and create capital for the cash-strapped firm, the Straits Times reported, the Singapore-based company has been sold to Malaysian company Tulipa.
Cash revenues are projected to result in a benefit of approximately 6.7 million HK$. Tulipa is the property of Lim Keong Hui, son of Lim Kok Thay, majority shareholder of Genting Hong Kong. Genting Hong Kong has recently halted creditors’ payments due to the Covid-19 pandemic triggering cash flow issues. It said it wanted to use its available funds on resources that are vital to the activities of the organisation.
Last month, Bloomberg confirmed that Genting group chairman Kok Thay had pledged virtually all of his interest in Genting Hong Kong as collateral for loans after the company suspended payments to creditors. Zouk ranks among the world ‘s best night-clubs. In 2015, it was sold out to Genting Hong Kong.
The Zouk Group, which also owns the Five Guys burger joint at Plaza Singapore, had a pre-tax loss of HK$79.6 million for the seven months up to July 31, and had an unaudited combined net asset value of around HK$72.6 million on the same date, The Straits Times reported. Genting Hong Kong owns the brands Star, Dream and Crystal Cruises, runs shipyards and has an interest in the World Manila resorts.
The study reported that it made a net loss of US$ 742.6 million in the first half of the year, mainly attributed to port closures that caused cruise ships around the world to stop cruising as early as February.
Revenue for the six months was US$ 226.2 million, down from last year’s US$ 729.2 million in the same time frame. According to the survey, the Hong Kong-listed company owed US$ 3.4 billion as of July 31. The firm said it had begun introducing measures — including cost-cutting and loan deferment — to have a “fair prospect” of satisfying its financial commitments by June next year.
It said that it had been interested in investing in one of its cruise brands. The hospitality and gaming empire of the Malaysian conglomerate Genting has been heavily disrupted by pandemic prohibitions, which have caused the partial closing of casinos and put a halt to tourism worldwide, the Straits Times added. – Adapted from FMT