Sounds like NCL is in trouble... May be time to cancel my October RCI cruise...

[Cruisin_n_Boozin]

https://www.cnbc.com/2020/05/05/norwegian-cruise-line-says-theres-substantial-doubt-about-its-ability-to-continue-as-a-going-concern.html

[Milwaukee Eight]

1 minute ago, Cruisin_n_Boozin said:

https://www.cnbc.com/2020/05/05/norwegian-cruise-line-says-theres-substantial-doubt-about-its-ability-to-continue-as-a-going-concern.html

Was there content there or just a headline?  I see nothing other than just a headline with NO source. 

[Cruisin_n_Boozin]

2 minutes ago, Milwaukee Eight said:

Was there content there or just a headline?  I see nothing other than just a headline with NO source. 

 

https://www.yahoo.com/news/norwegian-cruise-line-flags-cash-124501878.html

[Milwaukee Eight]

4 minutes ago, Cruisin_n_Boozin said:

 

https://www.yahoo.com/news/norwegian-cruise-line-flags-cash-124501878.html

Still not much to offer. 
 

May 5 (Reuters) - Cruise operator Norwegian Cruise Line Holdings Ltd said on Tuesday it does not have enough cash to meet its obligations in the next year and raised doubts about its ability to keep running its operations.

The company was evaluating strategies to increase its liquidity, it said in a regulatory filing.

Norwegian Cruise and rivals Carnival Corp and Royal Caribbean Cruises have been among the worst-hit companies by the coronavirus crisis, bleeding cash and scrambling for funds to ride out the slowdown. (Reporting by Ankur Banerjee in Bengaluru; Editing by Saumyadeb Chakrabarty)

[DeltaOne]

Norwegian Cruise Line Holdings owns Norwegian as well as Oceania and Regent Seven Seas.  I guess this means all three may go under.  

 

Norwegian is the third largest cruise line by passenger volume (8.7%).  It's hard to imagine how bad things will be when a company of this size can't survive.

[twins_to_alaska]

https://www.forbes.com/sites/sergeiklebnikov/2020/05/05/norwegian-cruise-line-stock-plunges-20-after-company-warns-of-possible-bankruptcy/#2e94fc65481e

 

[travelhound]

I don't think anyone wants to see NCL go bankrupt.  My family has enjoyed many sailings on NCL.  That said, RCC and CCL will probably benefit, because the cruise industry is too crowded.  The thinning of the herd will make the industry much healthier.

[Milwaukee Eight]

5 minutes ago, travelhound said:

I don't think anyone wants to see NCL go bankrupt.  My family has enjoyed many sailings on NCL.  That said, RCC and CCL will probably benefit, because the cruise industry is too crowded.  The thinning of the herd will make the industry much healthier.

Don’t you think someone will buy and use those ships if NCL goes down?  I do. Otherwise they can become artificial reefs. 

[Scottee25]

10 minutes ago, Milwaukee Eight said:

Don’t you think someone will buy and use those ships if NCL goes down?  I do. Otherwise they can become artificial reefs. 

 

More than likely they will file bankruptcy and restructure debts in hopes of emerging and conducting business once the greatest risks of the pandemic are behind this.

[MacMarauder]

9 minutes ago, Milwaukee Eight said:

Don’t you think someone will buy and use those ships if NCL goes down?  I do. Otherwise they can become artificial reefs. 

 

Exactly, the ships might even still say "NCL" on the side even if the company is structured differently. Six Flags went bankrupt and the parks still exist. Chrysler went bankrupt but you can still buy one today. Going bankrupt doesn't mean the end of operations, as long as cruises can be operated safely and profitably someone will run them.

[zekekelso]

Don’t confuse “go bankrupt” with “go out of business.” Go bankrupt usually means they can’t make payments on all the money they borrowed. Bond holders and stockholders may get screwed. Suppliers may get screwed. Cruisers with deposits may or may not get screwed. But usually the company can go on with business. 
 

of course it’s possible infectious diseases may make that impossible too. But at a a different issue. 

[travelhound]

1 hour ago, Milwaukee Eight said:

Don’t you think someone will buy and use those ships if NCL goes down?  I do. Otherwise they can become artificial reefs. 

Yup, RCC and CCL will buy them at a very good discount.

[Computer Nerd]

9 hours ago, Paul from Maryland said:

Norwegian Cruise Line Holdings owns Norwegian as well as Oceania and Regent Seven Seas.  I guess this means all three may go under.  

 

Norwegian is the third largest cruise line by passenger volume (8.7%).  It's hard to imagine how bad things will be when a company of this size can't survive.

 

Or how good things will be for Royal and Carnival when NCL goes under.

[firefly333]

I hear ford is having trouble, should I sell my mercedes?

 

Makes about as much sense to me as ncl is having trouble I should cancel my rcl cruises.

[travelhound]

46 minutes ago, Computer Nerd said:

 

Or how good things will be for Royal and Carnival when NCL goes under.

Yup, RCC and CCL will be the direct beneficiaries.

[B-52]

If they declare bankruptcy, it does not mean they are going away. It means they are in a no-win financial situation, and they need to re-organize, propose a new business plan and budget, probable management shake up
, etc, all the time being protected by its debtors (people they owe money to)

When cruising resumes, they will continue also, even if they are in bankruptcy. It is their product and source of revenue. Can't re-structure without it.
It is not out of the question to think RCI and CCL will not do the same if a revenue source is not re-established soon...it is the thing to do from a business standpoint. They are bleeding and one way or the other it will have to stop.

Does that mean going to the courts?

Edited May 6, 2020 by B-52

[Hoopster95]

3 hours ago, travelhound said:

Yup, RCC and CCL will buy them at a very good discount.

 

Definitely not RCC. They'll be stuck for years paying off their upcoming billion dollar commitments on many new ships, let alone the $2,200,000,000 ... that's $2.2 billion ...  loan at 12% compounded interest ..... back to Morgan Stanley.

[Ocean Boy]

5 hours ago, travelhound said:

I don't think anyone wants to see NCL go bankrupt.  My family has enjoyed many sailings on NCL.  That said, RCC and CCL will probably benefit, because the cruise industry is too crowded.  The thinning of the herd will make the industry much healthier.

Thinning of the herd will only result in higher prices for the remaining supply.

[Jingerwoppy]

13 minutes ago, Ocean Boy said:

Thinning of the herd will only result in higher prices for the remaining supply.

 Yeppers.

[travelhound]

1 hour ago, Ocean Boy said:

Thinning of the herd will only result in higher prices for the remaining supply.

Maybe, but demand will be weak for several years, so thinning the herd will ensure the remaining companies are healthy and the industry survives.

[HBE4]

 

Carnival will just buy NCL. It's been a while since they've acquired a new brand.

[FLACRUISER99]

I think MSC will be the big survivor.

[bouhunter]

14 hours ago, travelhound said:

Yup, RCC and CCL will buy them at a very good discount.

Only if there is a lender willing to finance it.  Not like they will have lots of cash laying around to buy more ships....

[travelhound]

2 hours ago, bouhunter said:

Only if there is a lender willing to finance it.  Not like they will have lots of cash laying around to buy more ships....

I think they will scrap some of the smaller, older NCL ships, and then purchase others over time at very favorable interest rates.

[travelhound]

8 hours ago, HBE4 said:

 

Carnival will just buy NCL. It's been a while since they've acquired a new brand.

Yup, NCL could become one of the many Carnival brands.