Genting Hong Kong Ltd., the parent of Crystal Cruises and other lines, warned that it is suspending payments to creditors to conserve cash to maintain operations.

“The COVID-19 pandemic has had and will continue to have a material impact on the financial position and results of operation of the group,” Genting said in a statement.

The company said its available cash will be reserved to maintain critical services for the group’s operations, while it seeks a debt restructuring.

Genting said the group has undertaken cost reduction measures and is planning to raise funds to boost liquidity.

The statement also said two subsidiaries – Dream Global One Ltd. and Dream Global Two Ltd. – missed a payment of €3.7 million in bank fees in connection with the financing of the construction of certain ships.

As of July 31, 2020, the company owed US$3.37 billion in total.

“In addition to the events of default that have already occurred … the board anticipates that the temporary suspension of all payments to the group’s financial creditors will also likely result in events of default occurring under other finance documents of the group,” the statement said. “Such events of default would give rise to a right for requisite creditors of the group to declare that the financial indebtedness owed to them are immediately due and payable.”

Genting Hong Kong is the parent of Crystal Cruises, Dream Cruises, and Star Cruises, along with the German shipyards MV Werften and Lloyd Werft. TravelPulse asked Crystal for comment, but the luxury line did not immediately respond.

When Genting Hong Kong acquired Crystal in 2015, it operated two ocean ships; today, Crystal is a multi-brand company with a river line, a yacht, and an expedition ship under construction. The latter, called Crystal Endeavor, has been delayed for about a year due to a shutdown at MV Werften. It was originally set for delivery in summer 2020.

Another newbuild, Global Dream, also was delayed for a year until 2022. Its company, Dream Cruises, resumed sailing with one ship July 26 in Taiwan.

Crystal has cancelled all ocean and river voyages through December 2020; it suspended its yacht voyages on the Crystal Esprit through Jan. 9, 2021.