Vantage Travel Bankruptcy

[Coral]

Not sure if this has been posted yet:

 

Vantage Travel files for Chapter 11 with sale agreement pending

 

Seatrade article

[Host Jazzbeau]

Thanks @Coral – this is very good news!  [Much better than I expected, even though customers owed funds may not be happy with the terms of the offer.  Yesterday I didn't expect them to see a penny...]

 

Here is another article, from CruiseIndustryNews:

Vantage Travel Signs Deal to Sell to United Travel, Heritage Expeditions

[Canal archive]

Very interesting I think it was fairly obvious that there were several companies getting their ducks in a row for a move like this, now it will be interesting to see how the people at the bottom of the tree are treated, it could be the saving grace of the new owners, fingers crossed 🤞 

[Host Jazzbeau]

Latest update on CruiseIndustryNews:

Potential Vantage Travel Sale Would Include Customer Credits

[Host Jazzbeau]

Good news and bad news today on Cruise Industry News:

Two More Bidders, Including Aurora, Emerge for Vantage

 

The good news is that at least one additional bidder seems very serious, and would clearly utilize the expedition ships, as would the other potential bidder.

 

The bad news is that the backgrounds of all three bidders does not include river cruising, so there's no indication that a sale would revive that aspect of the line.  As Michael J. Goldberg of Casner & Edwards, the lawyer representing Vantage, said the customer list "is the company’s main possession."

 

[Guest ldtr]

While it might be good news from the point of the Vantage name coming back some day with small ocean ships, it does not seem to make any difference for customers that have lost money. The deals seem to be purchase of assets, so that still leaves the odds of any recovery based upon the bankruptcy court, if they are not covered by appropriate insurance or did not purchase by credit card.

 

The best chance seems to still be if the buyer give a credit (up to 20%) on future purchases that was mentioned when the first deal was announced.

Edited July 6, 2023 by ldtr

[Host Jazzbeau]

You are correct as to those who are owed money.  But it is good news for those who liked Vantage and/or who liked those ships.

[sharkster77]

News on a Boston TV station just mentioned that 10,000 customers are owed a total of $80 million in refunds.  Getting a 20% discount on a cruise with the new owners?  I would RUN, run away from that offer---there are many other tour companies out there.

[Guest ldtr]

1 hour ago, sharkster77 said:

News on a Boston TV station just mentioned that 10,000 customers are owed a total of $80 million in refunds.  Getting a 20% discount on a cruise with the new owners?  I would RUN, run away from that offer---there are many other tour companies out there.

The problem is that the sale of assets after bankruptcy separates the debts from the assets. The bankruptcy court handles the processing  of debtor claims using any funds that the original company had as well as the funds received from the sale of assets.

 

The new buyer of the assets is not responsible for any of the debts. So anything they offer is goodwill not because of any responsibility for any of the debts owed by the original company.

 

So technically they do not have to offer anything. Atleast such deals allows some recovery, even if it's not ideal.

 

 

Edited July 6, 2023 by ldtr

[Guest ldtr]

1 hour ago, Host Jazzbeau said:

You are correct as to those who are owed money.  But it is good news for those who liked Vantage and/or who liked those ships.

Except it is unclear exactly how the new owner will choose to operate those  ships. They may operate them in a similar fashion, as the new crystal seems to be doing compared to old Crystal, or they may move in a different direction.

[deec]

I am suddenly getting many mailings from Road Scholars.  I wonder if Vantage sold them our names and contact info?

[Host Jazzbeau]

26 minutes ago, deec said:

I am suddenly getting many mailings from Road Scholars.  I wonder if Vantage sold them our names and contact info?

I doubt that, because the Vantage bankruptcy attorney said the customer database is the major asset available to a new buyer.

[Roz]

@deec, have you ever taken a class with a Lifelong Learning Institute (LLI) or asked to be on one of their mailing lists?  Road Scholar is affiliated with them. 

[NantahalaCruiser]

On 7/5/2023 at 10:24 PM, sharkster77 said:

News on a Boston TV station just mentioned that 10,000 customers are owed a total of $80 million in refunds.  Getting a 20% discount on a cruise with the new owners?  I would RUN, run away from that offer---there are many other tour companies out there.

This is all an excellent reminder of why one should always get travel insurance through a third party whose offers include coverage for financial default of the cruise line.

[CPT Trips]

51 minutes ago, NantahalaCruiser said:

This is all an excellent reminder of why one should always get travel insurance through a third party whose offers include coverage for financial default of the cruise line.

Absolutely.

And remember that these policies usually require purchase shortly after the date you make your initial payment. Don’t procrastinate. 
Plus, I’ve always found coverage at a price comparable to or much less than what the cruise line charges. 

[Host Jazzbeau]

3 hours ago, CPT Trips said:

And remember that these policies usually require purchase shortly after the date you make your initial payment.

Not Allianz – full coverage including existing-condition waiver is available right up to final payment on at least two of their policies that I know of [Journey Plan through travel agents, and Expedition Plan on their website].  

 

But there is still a risk: you must be medically fit to sail on the day you buy the insurance, and Allianz could remove your cruise line from the covered list at any time [e.g. they removed Vantage some time between February 15 and June 15 of this year].

[Host Jazzbeau]

New update on Cruise Industry News:

Bids for Vantage Travel Due By August 3

[Host Jazzbeau]

I think this is good news (or at least not bad news) for Vantage customers:

United States Trustee Challenges Vantage Bankruptcy Case

[sharkster77]

https://www.bostonglobe.com/2023/07/31/business/bankrupt-vantage-travel-used-expensive-ships-why-arent-they-listed-assets-court/?p1=HP_Feed_AuthorQuery

 

Today's Boston Globe.  Ships are apparently owned by a different corporation than the tour company.  Still owned by Lewis, though.

[Host Jazzbeau]

New article on Cruise Industry News:

Aurora Sweetens Offer, Wins Auction for Vantage Travel Assets

[Host Jazzbeau]

New article on Seatrade Cruise News:

Court expected to OK Aurora Expeditions' bid for Vantage assets

 

Aurora’s offer also allows Vantage customers to use existing travel credits to fund up to 50% of the cost of ocean voyages and 20% of river cruises and land trips, but this is not applicable to air travel or trip extensions.