Norwegian Cruise Line warns of possible bankruptcy

- By Chezhian Vaiz May 06, 2020
Miami

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Norwegian Cruise Line Holdings warned that it may have to seek bankruptcy protection and said there is “substantial doubt “about the company’s ability to continue amid COVID-19 Pandemic.

The world’s third largest cruise company said in a securities filing on Tuesday that it expects to report net losses for the quarter ending on March 31, 2020. “If we are not able to fulfill our liquidity needs through operating cash flows and / or borrowings under credit facilities or otherwise in the capital markets, our business and financial condition could be adversely affected and it may be necessary for us to reorganize our company in its entirety, including through bankruptcy proceedings, and our shareholders may lose their investment in our ordinary shares” the filing said.

“We cannot predict when any of our ships will begin to sail again or when ports will reopen to our ships. Moreover, even if travel advisories and restrictions are lifted, demand for cruises may remain weak for a significant length of time and we cannot predict if and when each brand will return to pre-outbreak demand or pricing” the report said further.

The Miami based Norwegian Cruise Line is the world’s third largest cruise company. The company owns three cruise lines: Norwegian cruise Line, Regent Seas and Oceania Cruises. Norwegian Cruise Line was Miami’s first cruise line founded in 1966. One of its partners, Arison left in 1972 to form Carnival Cruise Line. In 2013, the company went public.