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HANSENDE

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  1. "Norwegian Cruise Line said there is “substantial doubt” about its ability to continue as a “going concern” as the coronavirus pandemic wreaks havoc on the industry, warning that it may need to seek bankruptcy protection if it cannot line up enough financing in the coming months.

    The coronavirus outbreak, “including its effect on the ability or desire of people to travel (including on cruises), is expected to continue to impact our results, operations, outlook, plans, goals, growth, reputation, cash flows, liquidity, demand for voyages and share price,” the company said in a securities filing published Tuesday. “These factors have raised substantial doubt about the company’s ability to continue as a going concern.”

     

    Norwegian said it was in compliance with all of its debt agreements as of March 31, but it couldn’t guarantee that going forward and may need to seek waivers from its lenders. If it cannot amend its credit agreements, the company said it is at risk of default, which would trigger immediate repayment of most of its debt and derivatives contracts. That puts it at risk of bankruptcy.

    If it’s not able to maintain enough liquidity, “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 company said. "

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