Norwegian Cruise Lines May Go Out of Business

[mrlevin]

12 minutes ago, greykitty said:

In general, I don't think PE firms take a passive investor stance - but I wonder what Catterton will shake up at NCLH.

 

Here is a portion of a report on Renaissance and the injection of private equity in 2001.  Report by crociereuk without any copyright notice:

 

Quote

 

In April 2001 Malvern Marine, led by Ship Owner and investor Peter Gram, acquired a majority stake in Renaissance which led to the exit of Frank De Rio and Richard Kirby, the previous joint CEO’s. This infusion of fresh capital added $300 million to the companies coffers. This capital was much needed to support the companies significant growth on the back of the $1.5 billion ship building program.

The new ownership and leadership aimed to re-engage Travel agents and stop the heavy discounting that had been in place. It is believed the company lost $95 million on sales of $580 million.

However it was not to be, and following a significant deterioration in the travel industry following the September 11th attacks the cruise line halted all operations on 25th September.

 

 

Edited May 6, 2020 by mrlevin

[Pcardad]

1 minute ago, pappy1022 said:

It takes 2 to make a deal. Just because you plan doesn't mean it happens. And if it happens, at what price? Carnival had to pay 11.5% interest to get their funding. Their bonds were rated as junk bonds and they had to put up 2 ships for collateral. I hope Regent survives but I don't feel that I have an obligation to help them. I paid a lot of money for a product that they can't provide. I should get my money back as I have requested. Everyone needs to make their own decisions based on "facts" and advice from trusted advisors. I wouldn't label people on this chat board who have a vested interest in Regent as good advisors since their sources are Regent employees/executives who have an obligation to spin this the best that they can. 

Regent put up 2 ships and 2 islands....raised $675M last night. Now, on to the other methods. 

[Pcardad]

9 minutes ago, greykitty said:

Just curious - some quiet afternoons I go back a few hundred pages and read 'old stories from CC' - can be interesting reading what seemed topical then, and of course, stories of places visited don't really get that old.

 

That said, at least at some points back then seemed to be a lot of very energetic discussion regarding whether private equity ownership was desirable at a cruise line.  So far, not a lot of talk about L Catterton and their new stake. Everyone just waiting to see?  It truly is early days.   In general, I don't think PE firms take a passive investor stance - but I wonder what Catterton will shake up at NCLH.

They get 1 seat at the table....probably a minimal impact but it is a foot in the door.

[greykitty]

Pcardad, have you honestly ever seen a PE firm quietly sit back and not shake up operations quite a bit at any organization?   I don't think all PE firms are the devil, as they're generally thought of by a lot of the general populace, but they're certainly usually not Santa Claus either.  

[pappy1022]

2 minutes ago, Pcardad said:

Regent put up 2 ships and 2 islands....raised $675M last night. Now, on to the other methods. 

It may not feel this way given my opinions and posts on this topic but I sincerely hope that Regent makes it. There will be some big names in business that won't. Governments and businesses around the world are borrowing huge sums of money just to get by in the short term and when the dust finally starts to settle, there will be big bills to pay that will hinder growth for years to come.

[Pcardad]

I agree with you. Apparently NCL has reached and surpassed their $2B goal and will be sitting on $3.5B in liquidity. Seems fair to say refunds are safe as is the cruise line for a good 18 months...if not more.

[JVNYC]

Being financially safe is all well and good. The bigger issue is the completely changed product that awaits passengers. I’m not interested in vacationing with a bunch of masks. And let’s begin to discuss the immense cost cutting that will happen. NCLH is notorious for that. This will not be the same cruise line or cruise experience. Period. 

Edited May 6, 2020 by JVNYC

[Pcardad]

At this point, that is all conjecture. We are months away from sailing. There has been absolutely zero information released about safety precautions on future cruises or changes in service.

[Foyt]

Never mind

Edited May 6, 2020 by Foyt

[Pcardad]

Obviously a typo. And the $2B has been met and exceeded.

 

[Pcardad]

https://www.marketwatch.com/press-release/norwegian-cruise-line-holdings-ltd-successfully-secures-over-2-billion-of-additional-liquidity-in-oversubscribed-capital-markets-transactions-2020-05-06

[pappy1022]

Agree with both of you. They are in survival mode right now and time and the virus will dictate how things turn out. Personally, I dont have to cruise as I have many vacations I want to do that don’t include cruising. There so many local things to do as well as things start to open.  So I’m going to sit on the sidelines and see who the winners and losers are in the cruise industry and see what the product becomes. If that takes a year or two, so be it. In the mean time, I will do what I can do to stay safe, help others in need, pray and appreciate every day because it is a gift. 

[Travelcat2]

3 hours ago, Pcardad said:

Obviously a typo. And the $2B has been met and exceeded.

 

 

This is what happens when there are three threads about the same subject.  I have already posted on the two other threads that I "stand corrected".  I was so excited by the news that all I could think of was Regent.  It was too late to correct.  Hoping that this is the last time that I need to post this.  

 

 

[SusieQft]

9 hours ago, Pcardad said:

Regent put up 2 ships and 2 islands....raised $675M last night. Now, on to the other methods. 

Regent or NCLH?  Do you know which ships?

[JMARINER]

8 hours ago, Pcardad said:

Obviously a typo. And the $2B has been met and exceeded.

 

 

And yet the stock closed down .5% for the day.   😪

 

 

J

[Pcardad]

23 minutes ago, SusieQft said:

Regent or NCLH?  Do you know which ships?

Sorry...NCL. The article didn't say. They can have that island...it's horrific.

[Pcardad]

8 minutes ago, JMARINER said:

 

And yet the stock closed down .5% for the day.   😪

 

 

J

 

The market generally prices in changes as institutional investors have a big jump on individual investors. I don't day trade much anymore...just once in a while when I am bored. I did recently speak to a guy from JPMorgan and they are buying....but treat that as opinion because I am unable to prove it.

[Travelcat2]

2 hours ago, Pcardad said:

Sorry...NCL. The article didn't say. They can have that island...it's horrific.

 

Thank you for giving me what is probably my last laugh of the day! 

[pappy1022]

That’s funny? I thank no it’s sad. 

[fizzy]

6 hours ago, pappy1022 said:

That’s funny? I thank no it’s sad. 

We  had a fabulous stop there on the Mariner a couple of years ago. We were the only ship in port and had great fun with a lot of the crew who were off duty for the day.

[orvil]

We had a mega ship join us on the island on the same day.  The island was okay.  The situation was miserable.  The clientele were …. different.  We went back to Explorer and had tea.  

Edited May 7, 2020 by orvil

[Dolebludger]

On the national news tonight was a story about the airlines DOING NOTHING to increase social distancing, and statements that they were eliminating the middle seat in economy  were not true. The report was accompanied by video showing an airline economy cabin as crowded as before the pandemic. This irresponsibility is relevant on this thread, because included Regent air in Totally within North America is basic economy. This furthers my opinion that Regent and it’s parent NCLH will not survive. Nobody really wanted to fly under those conditions BEFORE the pandemic, and the airline’s fares for business/first were and are horrific. Indeed, business/first seating on many domestic flights was more crowded than coach used to be. For most of us, a cruise involves a flight, often many of them. For us, we will just not cruise until the airlines are REQUIRED to provide the same social distancing as our local retailers. And as I see no Federal move to crack down on the airlines, I don’t see many cruisers while the pandemic exists, and perhaps not thereafter.

[Travelcat2]

Dolebludger, I ask, as respectfully as I can, that you start another thread regarding your last post.  This is very interesting information and it is a shame to have it hidden in a bankruptcy thread.  Thanks much for your consideration.

[LvnCruisin]

6 minutes ago, Travelcat2 said:

Dolebludger, I ask, as respectfully as I can, that you start another thread regarding your last post.  This is very interesting information and it is a shame to have it hidden in a bankruptcy thread.  Thanks much for your consideration.

2:30 - 4:30 pm
I agree. The flight to any cruise is a vital part of any plan to resume cruising.

[Dolebludger]

Fine, but you are wrong about my comments not belonging in a bankruptcy thread. Lack of ability to get to and from the ports in a healthy, decent manner clearly diminishes cruise line sales, which in turn causes insolvency. It is as much an impediment to the financial health of cruise lines as other factors, such as social distancing, that have been discussed on this thread.