Jump to content
Cruise Critic Community

Another 1.2 billion for NCL

YankeeFan4Ever

By YankeeFan4Ever,
in Norwegian Cruise Line

 Share

Recommended Posts

PelicanBill

PelicanBill

Posted
Posted

@shof515 there are a lot of things that happen that are hard to be sure about.  First, we are assuming it is a "bankruptcy reorganization" and not "liquidation."  So first, NCL has to secure a bridge loan to keep operating during the reorganization. Because they are out of cash.  Then they have to hire an accounting company that guides them through the processes.  They create a new business plan that convince a court judge and new creditors is viable.  They must go through every asset and value it.  Go through every liability and dispose of it (cancel) or renegotiate it to fit the new plan.  Some assets, or parts of the business may be shut down or sold.  Different classes of creditor will be given varying amounts based on their financial status and interest. Stockholders typically get nothing or very little. The big question is how will people with fully paid cruises, deposits, and FCCs be treated?  It the company keeps operating, it seems likely those with paid cruises and deposits will be allowed to take them if the line can operate them.  FCCs is kind of unknown and may be a big liability without any money to satisfy them.  Another thing to note is that a company's suppliers get kind of annoyed when they aren't paid. Services and supply chains get disrupted.  Imagine sailing and there is no produce because the supplier decided to not show up that day of sailing...  

 

Link to comment
Share on other sites
beerman2

beerman2

Posted
Posted
5 minutes ago, PelicanBill said:

@shof515 there are a lot of things that happen that are hard to be sure about.  First, we are assuming it is a "bankruptcy reorganization" and not "liquidation."  So first, NCL has to secure a bridge loan to keep operating during the reorganization. Because they are out of cash.  Then they have to hire an accounting company that guides them through the processes.  They create a new business plan that convince a court judge and new creditors is viable.  They must go through every asset and value it.  Go through every liability and dispose of it (cancel) or renegotiate it to fit the new plan.  Some assets, or parts of the business may be shut down or sold.  Different classes of creditor will be given varying amounts based on their financial status and interest. Stockholders typically get nothing or very little. The big question is how will people with fully paid cruises, deposits, and FCCs be treated?  It the company keeps operating, it seems likely those with paid cruises and deposits will be allowed to take them if the line can operate them.  FCCs is kind of unknown and may be a big liability without any money to satisfy them.  Another thing to note is that a company's suppliers get kind of annoyed when they aren't paid. Services and supply chains get disrupted.  Imagine sailing and there is no produce because the supplier decided to not show up that day of sailing...  

 

If I was a pax with FCC and or OBC I would start being very concerned. I agree bankruptcy/reorganization looks like the way NCHL is heading with the Cool Lay Ups.

  • Like 2
Link to comment
Share on other sites
GA Dave

GA Dave

Posted
Posted
1 hour ago, sfaaa said:

Vaccine is the magic bullet.  As soon as it is approved and available,  ships will pull anchors and cash start to come in to pay down debts.

It is going to take a while from the time a vaccine is approved for most people who cruise to get it.  See the article linked below.  The plan being proposed is medical and first responders first, then nursing/retirement home residents and those rated as high risk, then teachers, school staff, essential workers, etc., then (finally) everyone else.

 

Who Will Be First In Line?

  • Like 2
Link to comment
Share on other sites
david_sobe

david_sobe

Posted
Posted
1 hour ago, sfaaa said:

Vaccine is the magic bullet.  As soon as it is approved and available,  ships will pull anchors and cash start to come in to pay down debts.

Yes but to vaccinate everyone will still take a long time.  Vaccine trials can last one year.  Then once approved first doses go to elderly and pre-existing conditions.  When it ventures down to young families that want to cruise could be a year after a successful vaccine is produced.  Covid is with us for years just like the other worldwide pandemic 100 years ago.  We will get through it but its gonna be a little while.  Good grief the news yesterday theorized that people only have Covid immunity as long as a cold virus immunity which is 3-4 months.  There are people getting Covid twice.

  • Like 1
Link to comment
Share on other sites
graphicguy "Live from...." Rare

graphicguy

Posted
Posted

I think this was the plan all along regarding loans.  As Dave points out, it's going to be a while before immunization takes place AFTER a vaccine is approved.  I happen to be in a group that's testing one of those vaccines right now.  I will say, although I'm not infected and feel fine, the trials have a ways to go.

 

Pelican Bill outlines the situation succinctly.

 

Personally, I think all the cruise lines are in the same boat, so to speak.  I see some consolidation happening, even further.  Some of the smaller "niche lines" being liquidated to support the main lines (Oceania, Regent, Hal, maybe even Celebrity since there is a lot of similarities between them and Royal).

 

 

  • Like 1
Link to comment
Share on other sites
oteixeira

oteixeira

Posted
Posted

I find it interesting that not only did the stock not get affected by this but also that no major outlets are reporting it in the US financial markets....Not saying it is false, just odd.  Actually, the more I google-foo, this is the ONLY article reporting this.  Are we sure it is correct, or up to date?  They did take 1.2B at another time, maybe this was just posted VERY late??

Link to comment
Share on other sites
njhorseman

njhorseman

Posted
Posted
12 minutes ago, oteixeira said:

I find it interesting that not only did the stock not get affected by this but also that no major outlets are reporting it in the US financial markets....Not saying it is false, just odd.  Actually, the more I google-foo, this is the ONLY article reporting this.  Are we sure it is correct, or up to date?  They did take 1.2B at another time, maybe this was just posted VERY late??

Two things at work here...it's taking place on a foreign market, not a US market, and It's not NCLH obtaining the financing, it's subsidiary corporation. NCLC, so it may not have been picked up in the US yet.

 

The article mentions previous debt transactions so i doubt this is an older event: "This new listing is in addition to three NCL Debt listings of approximately $1.94 billion announced August 13th".

Link to comment
Share on other sites
graphicguy "Live from...." Rare

graphicguy

Posted
Posted
21 hours ago, shof515 said:

what happen if ncl goes bankrupt?

Bankruptcy isn't the end of the world for any of these cruise lines.  You may see some mergers...some consolidation, but I believe the "big 3" (CCL, RCCL, NCL) will come back.  The other smaller "sub-lines"?  Those will be the ones where consolidations will occur.  You won't see the cruise industry as finely segmented as they are now.  That's probably something that needed to happen with or without covid.

  • Like 1
Link to comment
Share on other sites
Mrdodgy

Mrdodgy

Posted
Posted (edited)
On 9/2/2020 at 10:08 PM, oteixeira said:

I find it interesting that not only did the stock not get affected by this but also that no major outlets are reporting it in the US financial markets....Not saying it is false, just odd.  Actually, the more I google-foo, this is the ONLY article reporting this.  Are we sure it is correct, or up to date?  They did take 1.2B at another time, maybe this was just posted VERY late??

My first thoughts exactly, but I think it was not on main markets. Agree that it does look new 

 

If its correct then wow what a debt mountain they have and how on earth do you service and reduce it!

 

As to going bus,t nobody knows anything, and any news  I read can only be speculation and guesswork. I do think there might be a merger but just my view.

Edited by Mrdodgy
Link to comment
Share on other sites
oteixeira

oteixeira

Posted
Posted
3 minutes ago, Mrdodgy said:

My thoughts exactly.

 

If its correct then wow what a debt mountain they have and how on earth do you service and reduce it!

I have gotten to the point that if I don't see two separate sources saying it on the internet I don't believe it...

Link to comment
Share on other sites
intr3pid

intr3pid

Posted
Posted

This isn't any new debt issue - just a listing of their $750 million debt offering from July on this Bermudan exchange.  I assume it's designed to let the bonds trade internationally on a tax-advantaged basis.

 

None of the big three are going anywhere.  There's too much cruising demand pent up, and the investors and their banks know it.

  • Like 1
Link to comment
Share on other sites

Please sign in to comment

You will be able to leave a comment after signing in



Sign In Now
 Share
Go to topic listing
  • Forum Jump
    • Categories
      • Welcome to Cruise Critic
      • ANNOUNCEMENT: Set Sail Beyond the Ordinary with Oceania Cruises
      • ANNOUNCEMENT: The Widest View in the Whole Wide World
      • New Cruisers
      • Cruise Lines “A – O”
      • Cruise Lines “P – Z”
      • River Cruising
      • ROLL CALLS
      • Cruise Critic News & Features
      • Digital Photography & Cruise Technology
      • Special Interest Cruising
      • Cruise Discussion Topics
      • UK Cruising
      • Australia & New Zealand Cruisers
      • Canadian Cruisers
      • North American Homeports
      • Ports of Call
      • Cruise Conversations
×
×
  • Create New...