Posted on 06/23/2020 11:45:22 AM PDT by Capt. Tom
Saying that the pressures it faced from the coronavirus were simply too strong, Spain’s Pullmantur Cruceros announced that it has filed for a reorganization under Spain’s insolvency laws.
While Pullmantur was the first cruise line to succumb, many experts believe that he mounting pressures of no revenues and refunds to booked passengers along with ongoing cruise cancelations will take an increasing toll on the cruise companies
The brief announcement did not provide details for the proposed reorganization, but said that guests already booked to sail on Pullmantur will be offered the option to sail on other Royal Caribbean brands.This has caused speculation that Pullmantur’s ships would be sold. Pullmantur’s announcement came just days after reports surfaced that the British cruise company Cruise and Maritime Voyages was also scrambling to refinance. . CMV’s problems were computed when British authorities announced they had detained five of the ships over crew welfare concerns.,p.
The collapse of the smaller cruise companies may have ramifications for the larger publicly-traded cruise companies as well.
In announcing that Pullmantur had filed for reorganization, Royal Caribbean noted that all of its assets related to the Pullmantur Cruceros joint venture had been included in non-cash asset impairment charges reported in their first quarter of 2020 results.
Carnival Corporation had in recent years sold three of its cruise ships to CMV and reportedly provided owner financing as part of those transactions. snip
With the pressures and uncertainty continuing for the cruise industry, many analysts are expecting that these are just the first waves of impact on the companies.
Carnival Corporation’s preliminary report on the second quarter lead to speculation that a further capital raise was imminent and that the cruise companies would accelerate efforts to downsize their operations.
(Excerpt) Read more at maritime-executive.com ...
Below is just an opinion on possible bankruptcies, but supports my concern the Cruise Lines have waited to long to get income to pay of their debts.
Hoping for a 2021 income stream to bail hem out might be wishful thinking.
I know it is not the fault of the Cruise Lines but a combination of other factors.
Bankruptcy doesn't necessarily mean they are going out of business-just reorganizing.-Tom
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From the Daily Coin June 25, 2020
Another distressed retail favorite that was downgraded to junk status was Carnival cruise lines which has actually been number 6 on the top retail favorites on Robinhood.
Around the middle of March retail investors began pouring their money into cruise lines and pretty much anything that was selling off hard.
Unfortunately, the downgrade means due to the uncertainty about when they will safely be able to return to operations they now have a heightened risk of missing their debt payments meaning bankruptcy could be in the card for this retail investor favorite.
HAL , as you know is part of Carnival, as are several other lines.
You can buy right now, a Cruise ship off Carnival.
Take your pick; -SUNRISE - INSPIRATION- ELATION- ECSTACY- FANTASY...... -TOM
FWIW Cruise lines stocks are surging today.
are those the ships they are selling ??? what about the 6th one ???
BTW Ive been on Fantasy, Ecstasy, Elation and the Sunrise when it was the Triumph...
What....????? I PRAY WE CAN CRUISE SOON !!
Carnival (NYSE:CCL) -69.1% year to date
Royal Caribbean (NYSE:RCL) -76.9%
Norwegian Cruise Line (NYSE:NCLH) -82.1%
Many contrarians think that this bloodbath might be a golden buying opportunity into the sector. They reason that the coronavirus pandemic is fleeting. It’s bad today. But it will pass within the next few months.
You know who made a huge investment (?) in cruise lines in March & April? The Saudi government!
As far as I can determine those are the 5 ships Carnival is selling.
As far as the 6th Carnival ship goes, I believe it is the Costa Victoria.
_Tom
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"" the Costa Victoria's fate was called into question when the mayor of Italian town Piombino, Francesco Ferrari, announced on Facebook that the ship had arrived there to be prepared for demolition."
Much to close to my cruise on Oct 18...
I NEED A CRUUUUUUISSSSE !!!!!!!!!
Me too! I'm not as nervous as you since the Trump 2020 Victory Cruise is not until December 6. However, I need a cruise so badly that after the December cruise, we are already planning for a June Cruise to Alaska and we (my wife and I) might even add a Bahamas cruise in between.
I get how people are nervous about booking cruises until the actual cruises begin so in October after the Celebrity cruise lines starts (hopefully) sailing again, I will be posting an update on the Trump 2020 Victory Cruise. Embarking on the Celebrity Edge on December 6 from Port Everglades. Ports of Call are San Juan, Tortolla, and Philipsburg. Returning on December 13.
Celebrity is part of Royal Caribbean and it looks good for December departures.
If you book that trip now you probably won't have to come up with the fare until Sept 6th.
By that time you should know what is likely to happen. -Tom
Hi Ann-I hope you have a good cruise.
Besides battling health orgs cruise lines have to battle closures by countries. I hope the link below does not affect you. Just copy and paste it in. -Tom
https://www.cruisecritic.com/news/5430/
It’s not until MAY after we do our TA on Celebrity!! It BETTER be OK by then!
Pullmantur is going out of business it's 3 ships will be scrapped .
or cut and paste this in;
https://www.cruisehive.com/looks-like-a-sad-ending-for-the-pullmantur-cruise-ships/40498
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