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Norwegian going Bankrupt?


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2 minutes ago, AlohaLivin said:

How did it jump from they said there were growing concerns to articles that they may be going bankrupt to posts like “it’s official”?!?  It’s a bit like that childhood game of grapevine except there are far bigger consequences.  And it is exactly how panic happens, so there no good to come from adding to the chain effect.

 

No idea why the powers that be at Norwegian decided to throw out that phrase,“growing concern”, it was probably a mistake, but it was also accompanied by information regarding a multitude of deals that would keep NCL afloat for at least a year even if there were no cruises in that time. We like both NCL and RCL and have put our bet on them in a real way by buying stock in both. We will continue cruising, many people will is my bet. 

The term is "Going concern" and is common in accounting GAAP when there is doubt about the company's ability to meet their debt and continue.  It is not by any means a mistake especially in an SEC filing - it wasn't a press release - it was a message to investors or potential investors.  

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7 minutes ago, Dar & Bob said:

The term is "Going concern" and is common in accounting GAAP when there is doubt about the company's ability to meet their debt and continue.  It is not by any means a mistake especially in an SEC filing - it wasn't a press release - it was a message to investors or potential investors.  

 

 

If I may add to your post...

 

https://www.investopedia.com/terms/g/goingconcern.asp

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15 minutes ago, AlohaLivin said:

How did it jump from they said there were growing concerns to articles that they may be going bankrupt to posts like “it’s official”?!?  It’s a bit like that childhood game of grapevine except there are far bigger consequences.  And it is exactly how panic happens, so there no good to come from adding to the chain effect.

 

No idea why the powers that be at Norwegian decided to throw out that phrase,“growing concern”, it was probably a mistake, but it was also accompanied by information regarding a multitude of deals that would keep NCL afloat for at least a year even if there were no cruises in that time. We like both NCL and RCL and have put our bet on them in a real way by buying stock in both. We will continue cruising, many people will is my bet. 

FYI, it's "going" not growing:

 

What Is Going Concern? 

Going concern is an accounting term for a company that has the resources needed to continue operating indefinitely until it provides evidence to the contrary. This term also refers to a company's ability to make enough money to stay afloat or to avoid bankruptcy. If a business is not a going concern, it means it's gone bankrupt and its assets were liquidated. As an example, many dot-coms are no longer going concern companies after the tech bust in the late 1990s.

 

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Let us hope they don't go under.  Most of us on here are unsecured creditors in one form or another.  We either have deposits down on a planned trip or have purchased future cruise credits.  If they do fold we can all kiss that money goodbye as we would all be at the end of the line when it came to asset division.

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34 minutes ago, ggcruiser said:

FYI, it's "going" not growing:

 

What Is Going Concern? 

Going concern is an accounting term for a company that has the resources needed to continue operating indefinitely until it provides evidence to the contrary. This term also refers to a company's ability to make enough money to stay afloat or to avoid bankruptcy. If a business is not a going concern, it means it's gone bankrupt and its assets were liquidated. As an example, many dot-coms are no longer going concern companies after the tech bust in the late 1990s.

 

While I realized that was the term he used (the articles this morning were quite clear on that), the computer helps us "correct" terms and I was typing rather quickly trying to get to my next telehealth patient (unlikely to be the last typo in something I type on a computer). I am sure NCL will forgive me 🙂 Thank you for pointing that out for those who did not see the articles.

 

I should also add, that my post wasn't related to the term either way, but to the jumping to conclusions as to where they stand and making it worse by yelling FIRE in a theater. 

Edited by AlohaLivin
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Good news today already on the capital markets offerings.  NCL issued a press release that demand is strong and they have $2.2B in funding, more than they looked for ($2.0B), and that is enough for a year without customer sailings.

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3 minutes ago, PelicanBill said:

Good news today already on the capital markets offerings.  NCL issued a press release that demand is strong and they have $2.2B in funding, more than they looked for ($2.0B), and that is enough for a year without customer sailings.

Here is that article:   https://www.cnbc.com/2020/05/06/norwegian-cruise-line-raises-over-2-billion-to-withstand-well-over-a-year-without-revenue.html

 

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I'm looking to jump into a booking.  Now, trying to pick which port(s) they will be sailing from.  Looking seriously at Alaska for October, and barring that, maybe a holiday cruise in the Caribbean (and yes, I'm serious).

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4 minutes ago, graphicguy said:

I'm looking to jump into a booking.  Now, trying to pick which port(s) they will be sailing from.  Looking seriously at Alaska for October, and barring that, maybe a holiday cruise in the Caribbean (and yes, I'm serious).

I can't see Alaska happening this year. It's a short season and it would be difficult to get the ships back in position in time. The ports aren't open, and there is a lot NCL will have to do to ensure the safety of passengers and crew. The Caribbean is a better consideration.

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3 hours ago, ggcruiser said:

I can't see Alaska happening this year. It's a short season and it would be difficult to get the ships back in position in time. The ports aren't open, and there is a lot NCL will have to do to ensure the safety of passengers and crew. The Caribbean is a better consideration.

 

Alaska - over half the season is out of the question - the remainder would be limited profitability if any

The Mexican Rivera would be a possibility - no seasonal restrictions

Pacific coast cruises

Panama Canal cruise not so much paying too much toll fare

South America - opposite seasonal

Caribbean a big ocean out there - Eastern Southern Western

The Bahamas and Nassau private island

Canada and New England same boat as Alaska limited season remaining

Mediterranean possibilities East West Combo depending on ports open for business

Northern Europe - The Baltic - certainly but breaching cold weather cruising

 

The Transatlantic cruises to put the ships in place

 

POA Hawaii viable once the quarantine restrictions are lifted - but then the

airline flights resuming with enough capacity to fill the ship.

 

Asian Australia New Zealand "iffy"

 

Anyone for cruises to NO-WHERE - just to cruise for the sake of cruising ?

Edited by don't-use-real-name
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7 hours ago, travelhound said:

NCL CEO is going to be on CNBC with Jim Cramer tonight 

FDR: "Customers are still booking. Today, NCL is only slightly lower in load factors in 2021 than they were in 2020.


NCL raised 2.4B in addition to the 1.1B already on hand, gives NCL 18 months of liquidity in the event that there is zero revenue

 

NCL will sail in 2020.

 

Working hand in hand with the CDC to develop enhanced protocols. Confident that they can sail safely. And not all cruise lines are equal"

 

"Early action to ban  people from countries with outbreaks. Enabled incredible low COVD-19 cases on NCL ships". 

 

50%/50% took FCC over refund. Over 30% of the FCC has already been used for rebookings. "

 

 

Cranmer: "We did a lot of research for this interview. I would go back on another cruise with FDR. After doing extensive research into NCL's statistics on COVID-19 cases, NCL did far better than any other cruise line"

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1 hour ago, BirdTravels said:

FDR: "Customers are still booking. Today, NCL is only slightly lower in load factors in 2021 than they were in 2020.


NCL raised 2.4B in addition to the 1.1B already on hand, gives NCL 18 months of liquidity in the event that there is zero revenue

 

NCL will sail in 2020.

 

Working hand in hand with the CDC to develop enhanced protocols. Confident that they can sail safely. And not all cruise lines are equal"

 

"Early action to ban  people from countries with outbreaks. Enabled incredible low COVD-19 cases on NCL ships". 

 

50%/50% took FCC over refund. Over 30% of the FCC has already been used for rebookings. "

 

 

Cranmer: "We did a lot of research for this interview. I would go back on another cruise with FDR. After doing extensive research into NCL's statistics on COVID-19 cases, NCL did far better than any other cruise line"

I also saw the interview.  Frank did a good look.  It sounds like NCL just might survive this crisis.

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28 minutes ago, travelhound said:

I also saw the interview.  Frank did a good look.  It sounds like NCL just might survive this crisis.

I'm new to the Forum and noticed the topic because I've reserved on NCL. Don't think they'll go under, but if I lose the relatively small deposit, it's not the end of the world.

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Anyone who believes the spin of a struggling CEO, needs their head looking at, NCLH are still in deep trouble, nobody knows or understands how long this covid-19 epidemic will be around, NCL also have This for telling lies:

NEW YORK, May 07, 2020 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against Norwegian Cruise Line Holdings Ltd. (“Norwegian” or the Company”) (NYSE: NCLH) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Norwegian securities between February 20, 2020 and March 12, 2020.

I bet Del Boy wasn’t questioned about this?

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5 hours ago, JB Books said:

I'm new to the Forum and noticed the topic because I've reserved on NCL. Don't think they'll go under, but if I lose the relatively small deposit, it's not the end of the world.

With the money they raised from debt and equity sales, NCL should be able to survive.

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47 minutes ago, cruise47 said:

There are three (3) NCL ships In port located at the PIT in Portsmouth, Va.

The three ships are the ENCORE - BLISS - and the SPIRIT

 

Where are my ships ?

 

Preliminary search:

 

The STAR is currently enroute to Southhampton UK from Miami

The BLISS - ENCORE and the SPIRIT at Port of Portsmouth

Anchored off Port Canaveral the DAWN and the SUN

The ESCAPE and PEARL off of Miami

EPIC at Port of Miami

The JOY at sea off San Diego

JEWEL enroute to Port of Oakland (off CA coast near Vandenberg AFB)

PRIDE OF AMERICA at Port of Honolulu

 

 

Unknown (still searching)

 

GETAWAY
BREAKAWAY
GEM
JADE
SKY (possible dry-dock)

 

Add NCLH ships


SEVEN SEAS SHIPS:

MARINER at the Port of Oakland
EXPLORER
NAVIGATOR
SPLENDOR
VOYAGER

 

OCEANIC SHIPS
RIVIERA
MARINA
NAUTICA
SIRENA
INSIGNIA
REGATTA

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On 5/5/2020 at 9:22 PM, fshagan said:

 

Companies have to file a quarterly statement (8k, I think) with the SEC. The 8ks must have language in them that states the company is or is not "a going concern" over the next 12 months. If they are not, the company explains why, and what they are doing to avoid it, etc. 

 

If they know this negative information, and do not disclose it, they can go to jail. The CEO, CFO, etc. But that doesn't mean they have filed bankruptcy or anything like that. If there's a chance of something  happening, they disclose it.

 

So NCL filed their 8k this morning, and had a statement that they may not be "a going concern" over the next 12 months because of the Covid-19 financial impact. 

 

Find that 8k and read that headline, and all the rest of the text that explains how they will try to avoid bankruptcy. 

 

Quite right.  These statements have to include all the possible scenarios, as likely or unlikely they may be.  I've read a few of them over the years; they all describe doomsday scenarios like this.

 

So this does not mean NCLH is filing bankruptcy, or that it is imminent.

Edited by mpk
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On 5/5/2020 at 6:35 PM, Cb2534 said:

Unfortunately bankruptcy- even if only a reorganization and not a full closure-  generally results in the inability of people to collect any funds or credits thay are owed from the company.        That's right we have a president that did it 4 times.

 

 

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Awful political, Ob. I'm not sure what will happen, either to my distantly-scheduled cruise, the NCL, or the economy in general.... and have very little control over any of it. I'm gonna avoid fear and panic, while looking forward to a (hopefully) great future cruise experience with my wife.

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