CCL to remove two more ships from fleet beyond previous disclosure

[KirkNC]

Let’s hope there are not HAL’s!

 

https://www.marketwatch.com/story/carnival-to-remove-2-more-cruise-ships-from-its-fleet-that-previously-expected-2020-07-29?siteid=yhoof2&yptr=yahoo

 

 

Edited July 29, 2020 by KirkNC

[Himself]

Please give the link for that announcement.  I, also, do not want to lose any more HAL ships.

[KirkNC]

1 minute ago, Himself said:

Please give the link for that announcement.  I, also, do not want to lose any more HAL ships.

I think I was adding it when you posted 😳

[YXU AC*SE]

8-K text follows.     Scott. 

source: https://www.sec.gov/ix?doc=/Archives/edgar/data/815097/000081509720000066/ccl-20200729.htm

 

Item 2.06 Material Impairments.

 

In connection with Carnival Corporation & plc’s (the “Company,” “we,” and “our”) actions to maximize liquidity, we previously announced, on July 10, 2020, plans to remove nine ships from our fleet in the next 90 days. The plans for the disposal of these ships are in addition to the sale of four ships, which were announced prior to fiscal 2020. We have made a decision to remove a further two ships from our fleet. These decisions are intended to align the fleet with the expected phased restart of guest cruise operations while also generating cost savings.

 

On July 23, 2020, senior management of the Company evaluated these two ships for impairment and concluded their carrying values are no longer recoverable when compared to their estimated remaining future cash flows. Consequently, and in combination with other ships and notes receivables with recoverability impacted by the current environment, we expect to record non-cash impairment charges during the third quarter of 2020. Although the actual amount of the charges has not yet been finalized, we expect the aggregate impairment charge to be in the range of $600 million to $650 million. We do not expect these impairments to result in any material future cash expenditures. We plan to continue to evaluate other options to maximize our liquidity and best position our fleet for future operations.

[Himself]

Just now, KirkNC said:

I think I was adding it when you posted 😳

Thanks.  I guess I am not too patient.  Sorry!

[KirkNC]

Just now, Himself said:

Thanks.  I guess I am not too patient.  Sorry!

it was my bad, I hit submit before I pasted the link.

 

[Sir PMP]

There goes the Volendam and Zaandam..

[Himself]

1 minute ago, Sir PMP said:

There goes the Volendam and Zaandam..

I read the link and I thought the same thing. 

[YXU AC*SE]

Potentially could be Carnival Fascination and Carnival Imagination.  Both are without plans for re-activation, and their Fantasy-class sisters, Carnival Fantasy and Carnival Inspiration are already at the breakers in Aliağa, TK waiting for their turn on the beach. 

 

Former Monarch / Monarch of the Seas was run up last week.        Scott. 

 

 

[iancal]

No surprise.  I believe that there will be more as time moves forward and CCL's cruise lines rework their covid and their post covid financial and marketing plans.

 

Anyone's guess as to which ships will get dumped. 

 

Without a doubt they will each represent be a combination of  one or more the oldest, the ones  requiring the most capital investment/ the ones that have the lowest customer/ship revenue and profit /and the ones that do not fit into the post covid direction of the cruise line.

[Wayfairers]

14 minutes ago, Sir PMP said:

There goes the Volendam and Zaandam..

Those are the two that come to my mind.  But I’ve not paid attention to the other lines owned by Carnival Corp....how many ships they’ve lost, size of the ships with respect to where Carnival Corp is going with that brand, how new the ships are, etc. 

[Crazy For Cats]

This crossed my FB feed about the Fantasy this morning.

 

[YXU AC*SE]

They are going to need a bigger beach.    Scott. 

 

[ontheweb]

Does anyone know which ships are pledged as collateral against their loans? I would suppose the only ships that could be at risk are those that are no pledged.

[YXU AC*SE]

21 minutes ago, ontheweb said:

Does anyone know which ships are pledged as collateral against their loans? 

 

The FInancial Times summarlsed CCL's pledge a few weeks back. 

Source:  https://www.ft.com/content/79cd7d89-3d61-4383-8abf-a2396a846f42

 

Presumably the nine for HAL (listed as Curaçao-registered) would be Zaandam, the four Vistas, Eurodam, Nieuw Amsterdam, Koningsdam, and Nieuw Statendam.     Scott.  

 

[iancal]

Loan guarantees/collateral  can be modified, switched and replaced with other non attached assets.

 

Princess has some older ships.  

Edited July 29, 2020 by iancal

[RD64]

Potentially - it could refer to the two ships sailing for P&O Australia that were scheduled to be sold to CMV. Now that CMV is not in the position to purchase them, they are candidates as well. One of the ships is Ryndam #2.

[LoveHAL]

3 hours ago, Sir PMP said:

There goes the Volendam and Zaandam..

 

Edited July 29, 2020 by LoveHAL

[Stateroom_Sailor]

6 hours ago, Sir PMP said:

There goes the Volendam and Zaandam..

 

If they have to go during the pandemic, might as well be now.  Rip the band-aid off quickly.

[rkacruiser]

6 hours ago, Crazy For Cats said:

This crossed my FB feed about the Fantasy this morning.

 

 

Clearly, Carnival Fantasy will be removed from the CCL fleet.

 

We can only speculate about Zaandam and Volendam.  Zaandam is slated for the 2022 world cruise.  Why would HAL promote that possibility if they did not think it ought to happen?  

 

 

[KirkNC]

27 minutes ago, rkacruiser said:

 

Clearly, Carnival Fantasy will be removed from the CCL fleet.

 

We can only speculate about Zaandam and Volendam.  Zaandam is slated for the 2022 world cruise.  Why would HAL promote that possibility if they did not think it ought to happen?  

 

 

You give HAL too much credit to see beyond tomorrow.

[DFD1]

4 hours ago, LoveHAL said:

 

 

Thanks for posting the link.  I don't read the notice as indicating HAL ships. There are lots of older ships in the Carnival collection of ships. I think the Zaandam is projected to do the world cruise in 2022. I sort of doubt they will get rid of either the Volendam or the Zaandam anytime soon...unless the whole industry comes crashing down.

[Indianadaytripper]

All of this could have happened because “ they wished to raise X amount of money” and just maybe the money didn’t come through. Imagine the double digit interest Yo pay on the loan. All the while no income coming I in from the US market. Just my thoughts 

[iancal]

HAL is currently accepting bookings and deposits/payments for sailings that they know will not sail.

 

Why should the WC be any different IF HAL is aware that Zaandam is planned to be dumped from the fleet.

Edited July 30, 2020 by iancal

[Sue from Canada]

13 hours ago, Sir PMP said:

There goes the Volendam and Zaandam..

Could they not keep one small ship are raise the prices like on the Prinsendam.  I'm sure many people would pay a premium to sail on one of the smaller ships.  And I loved sailing on the S & R ships.  2020 is getting worse.