We've talked all about FCC, but what about CruiseNext credits if NCL goes bankrupt?

[PortFees45]

Any of you bankruptcy law experts care to weigh in on this? 

[luv2kroooz]

I'm not a lawyer, but common sense tells me their value could be significantly reduced.

[Nachosdelux]

1 minute ago, blcruising said:

I'm not a lawyer, but common sense tells me their value could be significantly reduced.

 

yes, by up to 100%

[mugtech]

Just another unpaid liability.

[Liljo22]

Yes and no.  Prepackaged bankruptcies are more common now a days.  This would allow them to negotiate with their largest creditors before filing chapter 11 and possibly leave the FCC intact.  I have had several of my customers  Go through this and it did not affect my unsecured claims.  

[tomk3212]

With a CruiseNext or an FCC you've now become one of NCL's creditors and you then stand in line with the rest of the creditors.  You and a few hundred others including moi...lol

 

Seriously, as Lijo points out above, most bankruptcies nowadays are negotiated Chapter 11 proceedings whereby the creditors & the filing company with a judge overseeing agree on terms and conditions that allow the company to operate as close to normal as possible.  I doubt VERY much if a company like NCL that absolutely depends on keeping its customers happy would do anything that would pi** off hundreds of its customers by negating either CruiseNext or FCC's. 

 

A couple of retailers I've worked for in the past went through Chapter 11 bankruptcies.  It allows a company to reorganize its operations and it completely halts any attempts by existing creditors to collect debts owed by the company.  It also halts any pending lawsuits.  The BIG advantage for retailers is that it allows them to "break" leases with landlords (i.e. close unprofitable stores) with no legal consequences (getting sued by a landlord for lease breaking).  I don't know how it'd affect a cruise ship company like NCL but I'm sure NCL must owe big $$ on its existing fleet of ships.  There's probably some legal & financial advantages to taking the Chapter 11 route for a cruise ship company.

 

Chapter 7 bankruptcy is liquidation.  I doubt very much if that'll happen to NCL and the other cruse ship companies.