Genting Hong Kong scraps sale and leaseback deal for Crystal Endeavor

Cruise operator Genting Hong Kong has terminated the agreement with SNC Endeavor Leasing for the sale and leaseback of the cruise ship vessel Crystal Endeavor being built by MV Werften Wismar GmbH.

The consideration payable by SNC Endeavor Leasing, an investment company owned by Crédit Agricole group, was approximately EUR 350 million, equal to the contract price under the shipbuilding contract.

The vessel was scheduled for delivery in May 2020, however, the completion of both Crystal Endeavor and Global Dream has been delayed for a year due to the pandemic.

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Genting Hong Kong explained that the termination was agreed “in view of the substantial delay in construction and delivery of the vessel due to the impact of COVID-19 as well as the worldwide freeze of cruise operations and the uncertainty in relation to new constraints to allow the operations to resume.”

Upon completion of construction, the vessel will be one of the cruise ships operated under the Crystal Cruises brand.

The termination enters into force from January 1, 2020.

As informed, no fund transfer occurred between the parties consequential upon the termination of the acquisition contract and subordinated loan agreement. 

“The parties to the subordinated loan agreement further acknowledged that the drawdowns under the subordinated loan agreement shall be deemed not to have occurred, [with] the seller [being the subordinated lender] waiving its rights of payments of any interest under the subordinated loan in consideration of the termination of the transaction, with no other indemnity of any kind,” the company said.