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GENTING GETS GERMAN GOVT. BAILOUT


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9 hours ago, sasejm said:

I read about this a few days ago.  It is my understanding that the German government did this to help those local workers in Germany who are adversely affected by the (partial/complete?) closure of the shipyard.  I guess this will help Genting HK a bit, but I don’t see this as a long-term solution, especially when it is highly improbable that this outbreak will be contained by March of next year.  Also, this money is specifically earmarked for the shipyard, so I am not sure how this will help Crystal Cruises keep afloat.

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Substantial concerns were expressed by some German sources in a previous article that was posted on another thread that giving money to a foreign entity might allow them to send the money offshore to fund non German operations.  So, I believe that they have pretty much tied this money up to the shipyard operation.  The money originally sought was 570 million euros which I believe was looked at as enough to finish not only endeavor but also the first Global Dream.  The money provided appears enough to complete Endeavor but not the other ship which will have to be funded by a second tranche if it is forthcoming.  Even the union representatives who favored the first credit extension expressed some reservations in the previous article about a possible second tranche should it be necessary.  For the cruise operations to survive they need to start sailing.  So the best news in the Seatrade article in my opinion is this:P

 

"Yesterday Singapore announced that World Dream, built in Germany, will restart domestic cruises Nov. 6. This will be followed by Genting Dream resuming cruises from Hainan, China, in mid-November. "

 

Unfortunately nothing about Crystal but at least they might start making some money in Asia which could hold help Genting - if not Crystal - together.

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Here’s an updated article from computer industry news dated today...October 9th...emphasis on Completion of the crystal Endeavor.

 

https://www.cruiseindustrynews.com/cruise-news/23645-mv-werften-secures-loan-to-complete-new-crystal-ship-and-more.html

 

this is not the same as the one from the thread starter/original poster!!!!!!
 

Nancy

Edited by nancygp
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On 10/8/2020 at 9:57 PM, FlyerTalker said:

Cash not spent on the shipyards is cash that can be allocated elsewhere.

 

Finance 101.

This only works if Genting HK is actually interested in spending that “extra money,” if that actually can exist, even after this temporary bailout of the shipyard, on Crystal.  Also, the money is a temporary fix, and if the outbreak and the economic impact from that continues beyond March of 2021, Genting HK will be in the exact same position as now, or worse.

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Yes this is real and the money will be spent on Endeavor.

 

You know in the USA several companies (not cruise lines) that pay very little to no taxes got stimulus money.  Kept people employed.  Kept companies in business.  


When times were good things like building Endeavor at this ship yard employed many people so it Germany's way of keeping Endeavor and Genting afloat.

 

All around good news for Genting and for those of us who want to see Endeavor launched.

 

One can spend lots of time criticizing all sorts of companies.  You know companies who got money in 2008 and 2020 in the USA where heads got big bonuses and other benefits and some workers lost out.

 

In the case of Genting the pain hit everyone to some extent no matter what position you held.

 

As someone who wants to see Crystal survive and come back strong happy to see the investment being made here.

 

I hope many of you might feel the same way.

 

If you don't so it goes.

 

Keith

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