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The luxury residential cruise ship Odyssey stranded in Cambodia has been taken over by creditors. The ship will go to Singapore and may be auctioned, and passengers will be asked to evacuate. The subsequent restructuring and whether or not to resume operations is still full of uncertainties.
The American luxury residential cruise ship “Villa V Odyssey” ran aground on the 27th of last monthcambodia Later, the operating rights were handed over to the creditors and the ship is expected to sail.Singapore This may be possible in the futureauction As for the sale, the date has not yet been set. Cruise company officials hope to get the ship back by finding funding and an operating partner, but passengers have been asked to take back all personal belongings and disembark before the weekend.
CBS obtained an internal notice sent by the cruise company to guests explaining that creditors have taken possession of the ship and are responsible for the crew’s wages, fuel, daily operations and maintenance costs of the ship.
Mike Peterson, founder and executive chairman of operator Villa V, said follow-up processing will take 30 to 90 days, and the company still has time to regroup. He claimed that the lenders are willing to cooperate on an operational plan with financial support, and that the two sides have not hindered negotiations. “It’s not like if your car gets taken away you can never get it back.”
Some guests are dissatisfied with the cruise company’s continued optimism, saying it may give passengers unrealistic expectations.
The cruise company said in the notice that the creditor takeover of the ship does not mean that the fate of the Odyssey is sealed. The company believes there is still time to come up with a viable plan.
The residents’ plan to raise their own money to buy back the cruise ship has failed. A group of residents once obtained commitments from 169 people to make additional investments, but creditors refused to provide financing, and the takeover plan failed.
Internal documents obtained by CBS show that the cruise ship was in financial difficulty at least three months before arriving in Cambodia. The cruise company also asked in an internal briefing in August whether guests were unable to continue contributing money or were unwilling to invest any more money.
Some passengers had already sensed the crisis. Florida resident Joel Graff spent 350,000 yuan to buy a cabin, but only stayed there for 26 days after checking in in October last year.
Graves said he was informed of the cruise company’s deteriorating financial condition in late July and at that time the company asked guests for additional funds. After selling the RV on August 3, he believed the trip might not be sustainable. He has now found an apartment in Cambodia’s Kampot province at a monthly rent of 200 yuan, and is accepting of the fact that he will not be able to recoup his investment.
The Odyssey was originally one of the few cruise ships that offered long-term or permanent accommodation options. It has traveled for at least 755 days since its departure. The increase in fuel prices due to the war in Iran became the main reason for suspending cruise ship operations.
The cruise company said the average monthly fuel cost per cabin used to be about 1,800 yuan, but has recently risen to 6,000 to 8,000 yuan in some parts of Asia. Since it is difficult to deliver it to passengers, it is difficult to bridge the financial gap.
Odyssey announced the suspension of its operations on October 27. The aircraft originally carried 203 passengers and 156 crew members; Some passengers had already flown in from Cambodia, while others had made their own accommodation arrangements. The company said it would assist in finding temporary accommodation, but some passengers criticized it for not finding a list of hotels after landing.
The cruise company has considered filing for bankruptcy reorganization under Chapter 11 of the U.S. Bankruptcy Code. However, internal estimates suggest that operating costs for the first 60 days will be approximately 3 million yuan. This amount is planned to be covered through financing and guest maintenance expenses. However, whether it can find new funds and an operating team to restart the odyssey is still full of change.
Summary FAQ
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For the time being, the ship’s operating rights have been handed over to creditors, who will also cover crew salaries, fuel and maintenance costs. It is expected that the next step will be sent to Singapore, where it could be sold at auction, but the date has not yet been determined.
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The company said the creditor’s takeover does not mean the fate of the ship has been sealed. Talks between the two sides have not been interrupted. As long as funds and operating partners can be found, there are still 30 to 90 days for the restructuring. Theoretically, a feasible plan can be proposed.
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The main reason is that fuel costs have increased significantly, and the company’s financial gap has become difficult to meet, and it has even considered bankruptcy and restructuring. Guests originally wanted to raise money to buy back the cruise ship, but this failed because creditors refused to finance, and the chances of recovering the investment were slim.
