KfW IPEX-Bank says it is in contact with struggling cruise group Genting Hong Kong about possible solutions to its financial problems.

Germany’s state-owned export credit provider structured €2.6bn ($3bn) in financing for the Malaysian company last year.

“As one of the banks affected by the developments at Genting, we are in close contact with Genting itself as well as with other banks and parties involved and are intensively searching for possible solutions,” a bank spokeswoman confirmed to TradeWinds.

“We will not comment further and will refrain from making any assessments of the situation.”

The financing was for two cruiseships being built in the three shipyards of MV Werften in the German state of Mecklenburg-Western Pomerania.

The KfW IPEX-led consortium providing the financing includes BNP Paribas, Citibank, Credit Agricole, Credit Suisse and DNB.

A substantial portion of the loan was said to have been further syndicated to more than 10 other German and international banks.

Investor interest

The financing was for two cruise ships being built in the three shipyards of MV Werften in the German federal state of Mecklenburg-Western Pomerania. Photo: KfW-Ipex Bank

The financing is backed by export credit guarantees of the German government and the Finnish export credit agency Finnvera.

Genting Hong Kong recently said two of its subsidiaries had failed to pay fees of about €3.7m on ship construction loans and that the non-payment constituted a default.

However, the company confirmed this week that it has settled the bank fees and charges based on pre-existing terms.

Earlier this week, Genting Hong Kong said it had received “indicative letters” from private investors interested in investing in one of its cruise brands.

The company said in a regulatory filing that there is a “reasonable prospect” that the group will be able to obtain the necessary funding “within the next 12 months”.

Separately, Genting Hong Kong confirmed that it has sold the Zouk Group, a Singapore-based nightclub and lifestyle group for HKD 79.3m ($10.2m).

The company was bought by Lim Keong Hui, the son of Genting Hong Kong chairman Lim Kok Thay, according to a regulatory filing.

Genting said the move was part of a disposal of non-core assets and investments, to sustain its business pending resumption of cruise operations.