If NCLA folds - POA to Star & POAm to NCL

[DAGVBSB]

Found an interesting story.

 

http://www.starcruises.com/Investor/Releases/2007/Ca/ca20070817.pdf

 

This is the official document between Star and Apollo in regards to NCL and NCLA.

 

Go down to the bottom 1/3 of page 12. It explains the 16 month time window.

 

It also says that if the decision to shut down NCLA is made, then the POAm will be redeployed in the NCL fleet and the POA will be transfered to "the company" (the company is Star Cruises.)

 

So the plans are in place.......

[SeattleCruiselover]

Interesting piece of reading, once you get through all the legalese.

 

And we thought that they didn't have any contingency plans, eh? Guess it just goes to show that they DO.

[ohioNCLcruiser]

Old news but interesting.

[Bennett'sCruise]

Thanks, OP, for the link. Very interesting read.

I guess we can officially welcome the NCL Jade to the fleet ... as of yesterday. :D

 

~d

[cruizinwithkids]

So the plans are in place.......

 

Wouldn't it be kind of poor planning to give a time frame such as 16 or 18 months and then say, "OK, now what do we do?"

 

It reminds me of the stupid education system where I live. The budget override didn't pass, so the start of school was delayed so they could have another budget override vote. That one didn't pass either.

[flashdog_1]

And all this current hoopla about American flagged vessels being the only ones who can embark and disembark in American ports vs. the foreign flagged vessels who now "do" Hawaii or Alaska by stopping in Ensenada or Vancouver or other Br. Columbia cities after leaving from a US port so they are legal will have been in vain! I suppose the POAm could leave from San Diego and do Hawaii without stopping in a foreign port, though.

[avalanche2]

If everyone would support NCLA, this will not happen. I have been on 3 cruises and NCLA does a wonderful job.

[Planer's Edge]

That is too bad. I would rather have the Sky back in the NCL fleet. It is so similar to the Sun and I will miss not sailing on the Sun (don't like the itineraries).

 

PE

[Globaliser]

I wonder what the thinking was behind this? PoAm is a one-off, and Star has a lot of odd ships in its fleet. But, as Planer's Edge says, Norwegian Sky would just fit straight back into the NCL fleet.

 

Maybe the Asian market, infinitely more superstitious as it is, won't sail on a ship that's already sunk once? :D

[CarolChaCha]

:confused: Can someone give us a layman's explanation of what that long legal document means to those of us already booked on this year's POAM and POA ?? I just would like to know if I get to celebrate my 50th Anniversary on the Sept.13th sailing on the POAM or do I make alternative plans ? Is there a Lawyer amongst us who can give us the facts, please ???? Thanks for the feedback.

[CarolChaCha]

OOps, duplicate... sorry.

[Globaliser]

NCLA will probably still be in business in September 2008, and still with those two ships. So I don't think that you have much to worry about.

 

That's not a guarantee - if things go really pear-shaped, then of course the business might get shut down earlier. But personally, I doubt that's likely to happen. There's more likely to be an orderly wind-down in early 2009.

[cruizinwithkids]

:confused: Can someone give us a layman's explanation of what that long legal document means to those of us already booked on this year's POAM and POA ?? I just would like to know if I get to celebrate my 50th Anniversary on the Sept.13th sailing on the POAM or do I make alternative plans ? Is there a Lawyer amongst us who can give us the facts, please ???? Thanks for the feedback.

 

I'm not a lawyer and I don't even play one on TV. It does seem to be the general concensus that your 50th Anniversary plans should be fine. NCLA has been given until the end of the year to make it or break it. The current bookings in their system go through April 2009. I don't think there is "any" concern for September 2008.

 

Congratulations on 50 years. That is an awesome accomplishment.

[boeckli]

According to Seatrade Insider (6 Feb 2008) the company providing massage, hairdressing etc. facilities had reported entering into an agreement with NCLA to cover PoA, PoAm through to Sept 2011. This is the link http://www.cruise-community.com/ShowStory.asp?ID=13537

[Deck10 007]

Found an interesting story.

 

http://www.starcruises.com/Investor/Releases/2007/Ca/ca20070817.pdf

 

This is the official document between Star and Apollo in regards to NCL and NCLA.

 

Go down to the bottom 1/3 of page 12. It explains the 16 month time window.

 

It also says that if the decision to shut down NCLA is made, then the POAm will be redeployed in the NCL fleet and the POA will be transfered to "the company" (the company is Star Cruises.)

 

So the plans are in place.......

 

DAGVBSB, you are popping up everywhere in this website.

Don't be an Alarmist.

The 16 months window you mentioned concerns another matter.

NCLA can make the decision to shut down beween now and infinity.

The 16 months period is an undertaking by Star Cuises not to recall their $500 loan to NCLA ships during this period until a decision is made on NCLA.

If no decision is made i.e. NCLA continues operation after this 16 months period then the $500 loan to NCLA will be recalled.

[coaster]

I wonder what the thinking was behind this? PoAm is a one-off, and Star has a lot of odd ships in its fleet. But, as Planer's Edge says, Norwegian Sky would just fit straight back into the NCL fleet.

 

Maybe the Asian market, infinitely more superstitious as it is, won't sail on a ship that's already sunk once? :D

 

 

Pride of Aloha is a much nicer looking vessel than the boxy Pride of America. I miss having a Norwegian Sky in the fleet also.

 

Well, Star leased the Leeward after NCL's lease was over. Then again, Star ended their lease early. Maybe you are onto something....

 

I probably made a few folks nervous when I brought the following events up on a bridge tour when we were on the Leeward in her final months with NCL. The Captain knew all about her history needless to say...

 

A photo of her in her former role as the Sally Albatross after a fire in drydock.

http://www.faktaomfartyg.se/sally_albatross_1980_b_8.htm

 

Some other photos of her partial sinking.

http://fredfryinternational.blogspot.com/2007/10/maritime-monday-82.html

 

I have to add that I love that little ship was my favorite cruise regardless of her ugly past.

[DAGVBSB]

And all this current hoopla about American flagged vessels being the only ones who can embark and disembark in American ports vs. the foreign flagged vessels who now "do" Hawaii or Alaska by stopping in Ensenada or Vancouver or other Br. Columbia cities after leaving from a US port so they are legal will have been in vain! I suppose the POAm could leave from San Diego and do Hawaii without stopping in a foreign port, though.

 

The POAm and POA are not allowed to make regular west coast to Hawaii runs. Only for drydock purposes. Part of the agreement back in 2003 limited them to Hawaii only.

[DAGVBSB]

DAGVBSB, you are popping up everywhere in this website.

Don't be an Alarmist.

The 16 months window you mentioned concerns another matter.

NCLA can make the decision to shut down beween now and infinity.

The 16 months period is an undertaking by Star Cuises not to recall their $500 loan to NCLA ships during this period until a decision is made on NCLA.

If no decision is made i.e. NCLA continues operation after this 16 months period then the $500 loan to NCLA will be recalled.

 

Everything is based on FACTS..

 

Fact #1: In August, 2007, NCL in thier own press release stated that the Apollo Investment deal did not include NCLA and that a decision on the future of NCLA would be made within 16 months. At that time a decision would be made on continuing NCLA or the NCLA assets will be "liquidated" (their own word).

 

Fact #2: The above linked document officially lists what will happen to NCLA's major assets (namely the POA and POAm) if the cruise line is discontinued.

 

Simply facts, people can take them as they want. I honestly think a decision will be made on this issue well before December and that if they do decide to shut down NCLA, it won't happen until after Dec. 31 and may very well be a gradual shutdown.

[electricron]

The POAm and POA are not allowed to make regular west coast to Hawaii runs. Only for drydock purposes. Part of the agreement back in 2003 limited them to Hawaii only.

 

That's not entirely true. The exemption stated "primarily" Hawaiian service, not "exclusively" Hawaiian service.

 

The only locales the US flag ships can't sail to per the exemption are Alaska, Caribbean, or Gulf of Mexico ports. The Pride of America had sailed the US East Coast with passengers aboard. All three have sailed Hawaii to the US West Coast, or vice versa, with passengers aboard. The Pride of Aloha has sailed several Hawaii to Fanning Island cruises too. So, they haven't been limited to just Hawaiian cruises exclusively in the past.

 

But "primary" does mean sailing "mostly" in Hawaiian seas.

[electricron]

After a quick read of that Star Cruises document, Star Cruises will get paid some cash for the two remaining NCLA ships later this year.

 

As a summation;

 

If NCLA remains in business ~ $499 million in cash goes to Star

If NCLA is liquidated ~ $124 million in cash plus the Pride of Aloha goes to Star

 

Another interesting fact presented is what both ships are worth. As I read the Star document, as of 1 April 2007:

 

Pride of Aloha ~ $340 million (with no indebtedness)

Pride of America ~ $460 million (with $251 million indebtedness), therefore to be paid to Star ~ $209 million in cash.

 

Add the Aloha's worth of $340 million with the $124 million in cash, NLCA liquidation pockets $464 million onto Star's net worth.

 

Liquidation costs is $35 million net cheaper for NCL than the costs if NCLA remains in business. And those costs to remain in business is cash..........

 

If it's decided to keep NCLA in business, both Star and Apollo will add an additional $170 million (a total of $340 million) in exchange for more shares, to help fund that huge cash payment to Star.

So, $340 million of that $499 million going to Star in cash comes from both new equity from Star and Apollo. NCL is only hit with $155 million from it's net worth on paper.

 

So now it looks NCL loses more net worth if NCLA is liquidated.

Which means it probably won't be liquidated?

[Deck10 007]

That's not entirely true. The exemption stated "primarily" Hawaiian service, not "exclusively" Hawaiian service.

 

The only locales the US flag ships can't sail to per the exemption are Alaska, Caribbean, or Gulf of Mexico ports. The Pride of America had sailed the US East Coast with passengers aboard. All three have sailed Hawaii to the US West Coast, or vice versa, with passengers aboard. The Pride of Aloha has sailed several Hawaii to Fanning Island cruises too. So, they haven't been limited to just Hawaiian cruises exclusively in the past.

 

But "primary" does mean sailing "mostly" in Hawaiian seas.

 

The POAm and POA are not allowed to make regular west coast to Hawaii runs. Only for drydock purposes. Part of the agreement back in 2003 limited them to Hawaii only.

 

 

Oh, Oh DAGVBSB I knew you would get into trouble with Electricron.

Ron is right

[Deck10 007]

The POAm and POA are not allowed to make regular west coast to Hawaii runs. Only for drydock purposes. Part of the agreement back in 2003 limited them to Hawaii only.

 

That's not entirely true. The exemption stated "primarily" Hawaiian service, not "exclusively" Hawaiian service.

 

The only locales the US flag ships can't sail to per the exemption are Alaska, Caribbean, or Gulf of Mexico ports. The Pride of America had sailed the US East Coast with passengers aboard. All three have sailed Hawaii to the US West Coast, or vice versa, with passengers aboard. The Pride of Aloha has sailed several Hawaii to Fanning Island cruises too. So, they haven't been limited to just Hawaiian cruises exclusively in the past.

 

But "primary" does mean sailing "mostly" in Hawaiian seas.

 

Oh, Oh DAGVBSB I knew you will get into trouble with Electricron.

Ron is right.

[wultk]

It's official (almost), the Pride of Aloha is leaving the NCLA fleet. NCLA is now down to one ship, the Pride of America is the sole survivor.

[cruizinwithkids]

So is there an official date for this or should I be OK with my plans to sail the Pride of Aloha this Wednesday?

[ohioNCLcruiser]

It's official (almost), the Pride of Aloha is leaving the NCLA fleet. NCLA is now down to one ship, the Pride of America is the sole survivor.

 

wultk can you email me please?