Spanish Cruise Line Files for Reorganization
Royal Caribbean Cruises Ltd. and Cruises Investment Holding have announced they have filed for the reorganization of their Pullmantur Cruceros joint venture under the terms of Spanish insolvency laws.
Cruises Investment Holding owns 51 percent of the Spanish cruise line, and Royal Caribbean Cruises Ltd. owns the remaining 49 percent. Pullmantur’s board of directors determined that the impact of the COVID-19 pandemic on the line made the action necessary. Management notified employees of the decision after filings were made with Spanish authorities.
“Despite the great progress the company made to achieve a turnaround in 2019 and its huge engagement and best efforts of its dedicated employees, the headwinds caused by the pandemic are too strong for Pullmantur to overcome without a reorganization,” the board stated.
For now, Pullmantur has canceled all cruises through November 15, 2020. Those already booked to sail on the cruise line will be offered the option to sail on other Royal Caribbean brands, including Royal Caribbean International and Celebrity Cruises. Details of the offer will be shared with guests in the near future.
Crews are staffed at minimum maintenance levels on Pullmantur’s three ships currently, and the company will begin the process of assuring their safe return home.
The company didn’t say whether Pullmantur will try to bring back its ships and resume cruising again, but Cruise Industry News is reporting that crew aboard the company's ships are in the process of removing equipment and other fixtures from two of the vessels.
Royal Caribbean Cruises Ltd. noted that all of its assets related to Pullmantur Cruceros had been included in the non-cash asset impairment charges reported in their first quarter of 2020 results.
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