Maybank says allegations it would face major financial trouble due to Genting Hong Kong are baseless

KUALA LUMPUR: Malayan Banking Bhd (Maybank) stated vehemently that the allegations that it will face major financial trouble owing to exposure to Genting Hong Kong are baseless.

"With regard to your query on recent news articles suggesting that Maybank is one of the three Malaysian banks that will face major financial trouble owing to exposure to Genting Hong Kong, Maybank would like to state vehemently that these allegations are baseless," it said in a written reply to query on the issue.

It was reported that three Malaysian banks' profits, including Maybank, are set to take a major hit as trouble looms over cruise operator Genting Hong Kong -- a major Asian corporate casualty of the COVID-19 pandemic. The other two banks are CIMB and RHB Bank Bhd.

The report by Singapore's Straits Times said that these three banks are among some the chief unsecured creditors of Genting Hong Kong, with a combined exposure of US$600 million (RM2.5 billion).

Genting Hong Kong's liquidation filing came just a week after its German shipbuilding subsidiary MV Werften went into insolvency, a development that triggered cross-defaults for the entire group's various financing arrangements amounting to more than US$2.7 billion, it reported.