KUALA LUMPUR – Embattled Genting Hong Kong chairman and chief executive officer (CEO) Tan Sri Lim Kok Thay resigned today after the company filed for liquidation of its cruise line on Tuesday in Bermuda.
In a statement by the company, Lim’s resignation took effect last Friday.
He also relinquished his posts as executive director, and as a member of the remuneration committee and the nomination committee.
Meanwhile, Au Fook Yew has resigned as deputy CEO, group president, and executive director effective last Friday as well.
“Both Lim Kok Thay and Au Fook Yew have confirmed that neither of them has any disagreement with the Board, and there is no matter relating to their resignation that needs to be brought to the attention of the shareholders of the company.
“Upon their resignation, the company remains in breach of the requirements under Rule 3.10(1), Rule 3.21, Rule 3.25 and Rule 3.27A of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Ltd.
“In order to comply with the Listing Rules, the company will use its best endeavours to identify suitable candidates to fill the casual vacancies on the Board, as soon as practicable and in accordance with Rule 3.10(1), Rule 3.21, Rule 3.25 and Rule 3.27A of the Listing Rules,” the statement read.
Last week, Genting HK said three independent directors who formed half of its board had quit, leaving behind Lim and two other company executives.
Nikkei Asia then reported that a German court had ruled in favour of the state of Mecklenburg-West Pomerania, rejecting a request for payment claimed by Genting HK.
In December, Genting HK had taken the state to court and demanded a payment of US$88 million (RM368 million).
A subsidiary of the Genting Group, Genting HK accused the German state of failing to pay the money promised as part of a rescue plan for its now-insolvent shipbuilding.
Lawyers representing Genting HK told a state court in Schwerin, Germany that negotiators for Mecklenburg-West Pomerania “presented a mechanism that hid the political motivation”.
The money Genting HK claimed dates back to an agreement with the government in June to provide a bridging loan for the struggling dockyard operation on the Baltic coast.
The company had previously issued a warning of potential cross-defaults on financing arrangements amounting to US$2.8 billion following its decision to put its German shipbuilding business, MV Werften, into insolvency.
German officials reportedly blamed the insolvency on Genting HK’s rejection of a financial plan offered by the new government that took office last month.
The plan would have required Lim to inject US$68.47 million more and guarantee the repayment of at least €600 million (around RM2.9 billion) of new government loans.
Lim was only willing to put in US$12 million and wanted the government to clear the release of funds from earlier loans. – The Vibes, January 24, 2022
