Regal Princess Impounded at Fincantieri Shipyard last month by Italian Court

[dmwnc1959]

Interesting tidbit from an article today in the local Trieste newspaper. It's is along the lines of what Roses2 commented on earlier...

 

 

"Next Thursday is scheduled the second hearing of this appeal. The first was held a week ago, but had a short duration. The only fact emerged as important in that hearing was the intervention of the shipbuilding group, represented by a lawyer of Rome, which reiterated what had already been stated, is that ownership of the vessel is from the outset of construction, Princess Cruises. And so, in essence, they could not have seized the vessel since the foreclosure relates to an asset of Fincantieri.

 

The construction contract is drafted in English (by Princess Cruises), according to which the concept of ownership of a property is quite different from that of the Italian law."

 

Guess we'll have to wait and see what happens.

 

 

 

The financial machinations involved in a cruise company building a ship are far more complicated than one might imagine.

 

The Regal Princess cost is estimated to be $750 million (That is three-quarters of a billion dollars).

 

Generally the cruise line management (Carnival Corporation) floats a loan to cover the cost of the construction of the ship and contracts with the ship builder, in this case, Fincantieri shipyard. In most cases the company would pay agreed amounts at certain bench marks during the construction and make final payment after acceptance of the completed ship following inspections and sea trials. When the ship has been delivered Carnival Corporation probably will have paid Fincantiieri an estimated $750 million.

 

The corporation "bean counters" project the revenue of the new ship based on the forecast occupancy and spending patterns using the first revenue day. Should the Regal not be delivered on time, those "bean counters" would be mighty upset.

[skf]

Regency had all their ships seized and went out of business

I do remember that...we had found a Panama Canal cruise w/ Regency for the next year. I found out about the closure of the company when I walked into the travel agency to make the deposit.

If our deposit had been already booked Holland America would have adopted us & given us a similar cruise at Regency's booked price.

[Loonbeam]

That's interesting as I am not sure how a contract executed in Italy could supersede Italian law, but there are all kinds of issues regarding venue.

 

Apparently in the US, unless ownership is specified in the contract, it belongs to the builder until such time as contract terms are met. Exceptions typically have to do with financing on larger projects, so its possibly that whatever financier Princess used had them take ownership to allow for a construction lien. I am sure Fincantieri got something in return.

 

Interesting tidbit from an article today in the local Trieste newspaper. It's is along the lines of what Roses2 commented on earlier...

 

 

"Next Thursday is scheduled the second hearing of this appeal. The first was held a week ago, but had a short duration. The only fact emerged as important in that hearing was the intervention of the shipbuilding group, represented by a lawyer of Rome, which reiterated what had already been stated, is that ownership of the vessel is from the outset of construction, Princess Cruises. And so, in essence, they could not have seized the vessel since the foreclosure relates to an asset of Fincantieri.

 

The construction contract is drafted in English (by Princess Cruises), according to which the concept of ownership of a property is quite different from that of the Italian law."

 

Guess we'll have to wait and see what happens.

[dmwnc1959]

This article is in Italian if someone has a really good translation device. Looks like the next hearing is now scheduled for May 6th. I certainly don't want to raise any concerns, but does anyone think this is becoming a serious problem?

 

http://ilpiccolo.gelocal.it/cronaca/2014/04/05/news/regal-pignorata-udienza-il-6-maggio-1.8991411

[RickEk]

This article is in Italian if someone has a really good translation device. Looks like the next hearing is now scheduled for May 6th. I certainly don't want to raise any concerns, but does anyone think this is becoming a serious problem?

 

http://ilpiccolo.gelocal.it/cronaca/2014/04/05/news/regal-pignorata-udienza-il-6-maggio-1.8991411

 

Chrome does a reasonable translation:

 

"New hearing May 6 on the appeal that Princess Cruise Lines had filed against the seizure of the ship (which in Monfalcone is finalizing the preparation for the tests) applied for and received in early February by the lawyers representing the mother and six brothers Vincenzo Castellano, who died six years after a workplace accident at Fincantieri's Marghera, which forced him to immobility total. Thursday there was a hearing at the Court of Gorizia but only yesterday was announced by the Registrar's decision of the judge who has taken time to study the complex issue. The attachment was designed to obtain as soon as the money set by the court as provisional Mestre (EUR 500 thousand to 90 thousand to each mother and brothers) in its judgment of 10 October. With the use of the shipping company asks the court to Gorizia an injunction, pursuant to Article 700 of the Code of Civil Procedure, which is canceled with the transcription of the attachment on the register of ships under construction, the register maintained by the Port of Monfalcone. The whole purpose of "free" as soon as the Regal, in view of the already scheduled delivery in May (the ship is already present in a big way on the official website of the company). Procedures with "normal" (non-emergency) to get to judgment on seizure it would take a long time. On Thursday, the court heard, behind closed doors, the arguments of the lawyers of the family of Csatellano and those of Princess Cruises. "Even according to documents - had explained Diroma Francis, one of the defenders of the family - the magistrate will then make a reasonable judgment as to who is the owner of the ship. In the construction contract, in fact, in some places as the owner is indicated in some other Princess Cruises and Fincantieri. On the basis of all these elements - he adds - the judge will decide whether to remove the constraint transcription of the attachment. " The same lawyer had also foreseen the possibility of a second hearing to allow further investigation."

Edited April 6, 2014 by RickEk

[dmwnc1959]

Chrome does a reasonable translation...

 

Thanks Rick!

 

Any opinions on the legal procedures? She still has to conduct sea trials (takes roughly a week or so) and finish outfitting before she can be delivered, all this before her scheduled Maiden Voyage?

[simbacat2014]

Gosh... Timing is really tight ... Maiden voyage is on May 20th. I don't know enough about the logistics here so I wonder what will happen? I suppose work inside the ship can continue but what about sea trials?

Hope it all works out - fingers crossed.

 

 

Sent from my iPhone using Tapatalk

[RickEk]

Well, if Princess is deemed the owner, then I suppose no worries. I think it's telling that Princess' lawyers are in these proceedings.

[Colo Cruiser]

I guess only time will tell.

[chengkp75]

It gets even more complex when you consider that for insurance reasons, each ship is incorporated separately under the parent corporation.

[iamlin]

Uh oh!!! When do we start to panic?

[need2cruisesoon]

Uh oh!!! When do we start to panic?

 

Are you on the inaugural cruise? May 20th? - a mere 7 weeks away:eek:

[iamlin]

Are you on the inaugural cruise? May 20th? - a mere 7 weeks away:eek:

No, Venice to Barcelona June 2-9.

[Colo Cruiser]

Uh oh!!! When do we start to panic?

 

Why would you panic?