Bankruptcy - Pure Speculation

[bmwman]

On 3/18/2021 at 7:06 PM, FreestyleNovice said:

Bankrupt? I am still getting my payslips to promote NCL new builds.. 

 

 

 

 

 

 

 

build or buildS

Read somewhere that investors want cast yo be maintained to start reducing debt pile 

 

My complete guess is are that NCLH will sell one of the brands 

 

 

[dolfan1980]

16 hours ago, bmwman said:

build or buildS

Read somewhere that investors want cast yo be maintained to start reducing debt pile 

 

My complete guess is are that NCLH will sell one of the brands 

 

 

If there was a point where debtors were looking to be paid, I agree that selling off some assets is a possibility, as is a merger with MSC or Royal for example.  The reality right now is that debtors in travel sectors don't have any big advantage to calling debt due since what would they want to do with a fleet of mega ships when they have no other infrastructure to run their own lines...the best possibility to get their money back is to keep things intact and wait for a recovery, even if it is slow.  Bankruptcies result in getting pennies on the dollar which is why it's normally a last resort.

[want2go]

On 3/17/2021 at 10:48 AM, SouthLyonCruiser said:

A random thought occured to me concerning the future of NCL.

I have seen, in the past, in the golf course industry, something that may end up with a parallel in the cruise industry.

A corporation begins to build a golf course and, toward the end of construction, they begin to run out of funds. So, in order to get a quick infusion of cash, they offer something like a lifetime membership in the course at a low low unbelievable price.

Plenty of people sign up, the golf course finishes and is opened for business. 

Within a short period of time the owners sell the course and those who had 'lifetime' memberships were out of luck because the new owners were under no legal obligation to honor the memberships.

If Norwegian cannot financially survive this pandemic I wonder if they would declare bankruptcy, new blood buys all of their assets and reopens under a new name without incurring any obligations to those of us who have FCCs and cash deposits on future cruises?

Definitely something to think about.  CLIA used to insure payment to member cruise lines... way back.  Can't find that on their website today.  Did find this:

"What if the cruise company declares bankruptcy?

If your cruise line declares bankruptcy and the ship is departing from a US port, you'll be covered, says lawyer Christopher Kende.

"There's a requirement under the Federal Maritime Commission that cruise lines put up a bond to secure what's called unearned passenger revenues," says Kende, a specialist in maritime law at the firm Cozen O'Connor.

Even if the company is registered outside of the United States, or the ship is flagged in another country, Kende says your booking will be covered in case of bankruptcy or another disruption.

If you're sailing from an international port, Kende notes that passengers could be more exposed to risk. "If it's not a US-based cruise, it would probably depend on the law of the departure point of the cruise or the flag of the vessel," he explains.

https://www.cnn.com/travel/article/cruise-industry-coronavirus-aftermath/index.html

This is a year old article, but points made should be valid.

[ace2542]

On 3/17/2021 at 2:48 PM, SouthLyonCruiser said:

A random thought occured to me concerning the future of NCL.

I have seen, in the past, in the golf course industry, something that may end up with a parallel in the cruise industry.

A corporation begins to build a golf course and, toward the end of construction, they begin to run out of funds. So, in order to get a quick infusion of cash, they offer something like a lifetime membership in the course at a low low unbelievable price.

Plenty of people sign up, the golf course finishes and is opened for business. 

Within a short period of time the owners sell the course and those who had 'lifetime' memberships were out of luck because the new owners were under no legal obligation to honor the memberships.

If Norwegian cannot financially survive this pandemic I wonder if they would declare bankruptcy, new blood buys all of their assets and reopens under a new name without incurring any obligations to those of us who have FCCs and cash deposits on future cruises?

NCL will survive the pandemic providing they can avoid one thing. A multi billion dollar wrongful death suit for mask wearing argument.

Edited March 30, 2021 by ace2542