Substantial Doubt of 'Going Concern'

[kwokpot]

Headline just reported on CNBC business news channel. Sounds like the company may be exploring Bankruptcy filing( My assumption bases on reported headline)

[OzCanuck]

NCL just published that it may not survive...

[shof515]

here is some articles:

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

 

https://www.theglobeandmail.com/business/international-business/us-business/article-norwegian-cruise-line-flags-cash-crunch-going-concern-risks/

 

https://www.streetinsider.com/Corporate+News/Norwegian+Cruise+Line+(NCLH)+accounting+firm+includes+paragraph+regarding+substantial+doubt+about+ability+to+continue+as+going+concern/16832912.html

 

https://business.financialpost.com/pmn/business-pmn/norwegian-cruise-line-flags-cash-crunch-going-concern-risks

Edited May 5, 2020 by shof515

[disneykins]

not good. I thought things might be picking up after Carnival announced sailings starting up Aug. 1. NCL stock was up 6% in pre-market, now its down 10%. Anybody want to buy my Cruise Next certificates, lol.

[shof515]

i have a cruise for September, final payment is approaching. Looks like i might be forced to cancel it. I was hoping that things might improve and my cruise might of happen. Guess not 😞

[OneParticularHarbour 71]

Here is the CNBC article:

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

[desherry]

Here is what was just posted on CNBC:

 

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

[egurbi]

This is not good, but it is also not the end of the story by any stretch of the imagination.  One hopes there will be substantial interest in NCL by some investors, and that even if it is forced to enter into reorganization proceedings it will emerge in some form.

[ToroAzul]

glad I only have $100 tied up on my Sept 2021 cruise

[cruisekitty22]

Hoping we don't have to cancel our February 24, 2021 cruise!

[William W]

17 minutes ago, egurbi said:

This is not good, but it is also not the end of the story by any stretch of the imagination.  One hopes there will be substantial interest in NCL by some investors, and that even if it is forced to enter into reorganization proceedings it will emerge in some form.

I doubt it, though I can see some existing cruise companies may circle and be interested in buying one of their ship for pennies on the dollar.  I'm thinking Pride of America will probably be the one that garner the most interest.

[EllieinNJ]

Do you think they will have enough to pay back the ones who asked for a refund instead of FCC?

[William W]

Just now, William W said:

I doubt it, though I can see the surviving cruise line may circle and be interested in buying one of their ship for pennies on the dollar.  I'm thinking Pride of America will probably be the one that garner the most interest.

 

[LMaxwell]

5 minutes ago, EllieinNJ said:

Do you think they will have enough to pay back the ones who asked for a refund instead of FCC?

No

[William W]

Glad I cancelled a month earlier and got my deposit back last week.

[Nclcruise1415]

I'm not about to believe every single article that comes from the media. NCL has been able to put off some loans for up to a year on some of their ships and they're currently working different avenues (like many other lines) to protect and increase capital.

 

As much as you like to read the fear mongering articles you can also find articles that are telling what the lines are doing to protect themselves.

[djkolp]

This is the harsh reality of life during and after Covid-19. The cruise ships had become the poster child for this pandemic. I don't believe that enough people will return to the cruise lines in numbers large enough to keep them in business. Airlines are facing this same reality. I have already written off my Norwegian credit for 2021. 

[Dar & Bob]

2 minutes ago, Nclcruise1415 said:

I'm not about to believe every single article that comes from the media. NCL has been able to put off some loans for up to a year on some of their ships and they're currently working different avenues (like many other lines) to protect and increase capital.

 

As much as you like to read the fear mongering articles you can also find articles that are telling what the lines are doing to protect themselves.

This is per NCL's filing with the

SEC  https://www.cnn.com/2020/05/05/business/norwegian-cruise-line/index.html

[William W]

1 minute ago, Nclcruise1415 said:

I'm not about to believe every single article that comes from the media. NCL has been able to put off some loans for up to a year on some of their ships and they're currently working different avenues (like many other lines) to protect and increase capital.

 

As much as you like to read the fear mongering articles you can also find articles that are telling what the lines are doing to protect themselves.

It was NCL who declared it themselves in securities filing so I'll believe what comes out of their own press release.

[LMaxwell]

Here is a link directly to todays SEC filing by NCL.  Instead of quotes from articles here is the source itself 

 

https://www.sec.gov/ix?doc=/Archives/edgar/data/1513761/000110465920056537/nclh-20200416x8k.htm

 

We cannot predict when any of our ships will begin to sail again or when ports will reopen to our ships.

 

Our continuation as a “going concern” is dependent upon, among other things, our ability to increase our liquidity, and our conclusion regarding our ability to continue as a going concern could materially limit our ability to raise additional funds through the issuance of new debt or equity securities or otherwise. If we are successful in seeking additional equity or debt financing, as discussed below under the heading “We anticipate needing additional financing, and such financing may not be available on favorable terms, or at all, and may be dilutive to existing shareholders”

 

 

As a result of the impacts of COVID-19, we have seen an increase in demand from consumers for refunds on their tickets, and we anticipate this will continue to be the case for the near future. Requests for refunds may reduce our liquidity and risk triggering liquidity covenants in these processing agreements and, in doing so, could force us to post cash or other collateral (including the potential to post certain of our vessels as collateral) as a reserve with the credit card processing companies in accordance with the terms of our agreements with them. Because of COVID-19, we have been in conversation with our credit card processors about posting collateral, and if we were required to post collateral or otherwise maintain a reserve, our financial position and liquidity could be materially impacted.

 

 

 

[John99]

Norwegian Cruise Line indicated on Tuesday it does not have enough cash to meet obligations in the next year and raised doubts about its ability to keep running its  Operations.  

 

Other Tuesday announcements by NCL to raise cash:

Per Globe Newswire –

NCL announces an offering of Ordinary Shares worth $350 million

NCL announces an offering of Exchangeable Notes and Senior Secured Notes worth $650 million

NCL announces $400 million investment by with private firm L Catterton worth $400 million exchangeable senior notes due 2024

TOTAL -- 1 billion

They are burning through cash.  Can NCL make it?

 

[Shawnino]

6 minutes ago, Nclcruise1415 said:

I'm not about to believe every single article that comes from the media. NCL has been able to put off some loans for up to a year on some of their ships and they're currently working different avenues (like many other lines) to protect and increase capital.

 

As much as you like to read the fear mongering articles you can also find articles that are telling what the lines are doing to protect themselves.

 

This is NCL's own filing/release. Nothing to do with the media. 

 

Educate yourself.

[vpearlkc]

We just made platinum on our last cruise. They can't do this to me. 

[ColeThornton]

...and you can hear the sound of several NCL forum posters head's exploding!

 

Hang in there, folks.

[Nclcruise1415]

2 minutes ago, ColeThornton said:

...and you can hear the sound of several NCL forum posters head's exploding!

 

Hang in there, folks.

 

The idiocity banging on keyboards is at an all time high right now. Amazing, isn't it? :)

Edited May 5, 2020 by Nclcruise1415