If/when the cruise lines go down, the banks might go with them, at least for the 11 Billion or so. It's like holding the mortgage on a gas station with a huge fuel leak remediation issue - who wants it?
“One thing the cruise lines have in their favor is that the debt held by the lenders is probably mostly secured by the ships themselves. If the big cruise lines go under, those large cruise ships drop in value to what? It’s not like there is a large market for large ships with all of the infrastructure in place that they have. snip...”
I totally agree with that. These second hand cruise ships are “white elephants.” Mainly because all the cruise lines worldwide are all in the same situation now, and need to downsize.
These second hand cruise ships are going for low prices.
see the link below:
https://www.cruiseindustrynews.com/cruise-news/23829-here-s-what-an-entire-cruise-fleet-sold-for-at-auction.html
The newer ships won’t bring in enough money to pay back the Billions borrowed.
Even Billionaires don’t want to get involved with them as a private yacht. -Tom