Troubled cruise ship operator Genting Hong Kong has reached an agreement to sell a private jet used for luxury charters to Genting Berhad for use at Resorts World Las Vegas.
The jet, a Global Express XRS aircraft manufactured by Bombardier in 2007, is currently held by Genting Hong Kong’s wholly-owned subsidiary Crystal Luxury Aircraft Holdings Limited but is being offloaded as part of the company’s strategy to dispose of non-core assets.
The US$4 million sale enables the group to “enhance its liquidity position in light of the uncertainties resulting from the Covid-19 pandemic,” it said.
In a Tuesday filing, Genting Hong Kong said it expects to record a loss of almost US$6.5 million on the sale given the aircraft’s carrying value of almost US$10.5 million but that it will result in annual savings of US$3 million for the repairing of the engines and another US$3 million on operating costs.
According to Genting Hong Kong’s announcement, the purchaser is Resorts World Las Vegas LLC, which opened its US$4.3 billion Las Vegas Strip resort last Thursday.
Lim Kok Thay acts as Chairman, CEO and Executive Director of both Genting Berhad and Genting Hong Kong and is a major shareholder in both companies, including a direct and indirect 70.915% in Genting Hong Kong via family trust Golden Hope Limited.
Genting Hong Kong, which has also sold its stake in a luxury yacht company to Lim and the Zouk nightclub brand to Lim’s son, Lim Keong Hui, announced earlier this week that it has consummated various agreements with lenders around a US$2.6 billion bailout package.
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