Substantial Doubt of 'Going Concern'

[Sam.Seattle]

27 minutes ago, EllieinNJ said:

Do you think they will have enough to pay back the ones who asked for a refund instead of FCC?

I don't think they have cash now. File a dispute with your credit card company which might help you get your money back.  

Edited May 5, 2020 by Sam.Seattle
miss-read post and corrected reply

[William W]

11 minutes ago, John99 said:

Norwegian Cruise Line indicated on Tuesday it does not have enough cash to meet obligations in the next year and raised doubts about its ability to keep running its  Operations.  

 

 

Other Tuesday announcements by NCL to raise cash:

Per Globe Newswire –

NCL announces an offering of Ordinary Shares worth $350 million

NCL announces an offering of Exchangeable Notes and Senior Secured Notes worth $650 million

NCL announces $400 million investment by with private firm L Catterton worth $400 million exchangeable senior notes due 2024

TOTAL -- 1 billion

They are burning through cash.  Can NCL make it?

 

 

Thanks for summarizing.  Based on the other news, I think NCL as a company will probably survive but current shareholders may get wipe out or severely diluted.

[dolfan1980]

Certainly wouldn't be spending any money with them until there is come certainty around this.  During normal times I would say that they would restructure or be acquired by someone else, but the possibility of a bankruptcy and any credits or cash being lost to creditors is certainly a risk, though I wouldn't run for the hills yet, I just wouldn't be making any bookings.

[trummy]

And still, I am getting an email from them daily asking me to book a cruise. Even if they do somehow stay afloat, I will never again sail with them. 

[seaman11]

Well. Chargeback time. They cant find all my fcc's anyway. 

[vpearlkc]

8 minutes ago, Nclcruise1415 said:

 

The idiocity banging on keyboards is at an all time high right now. Amazing, isn't it? 🙂

We have to have something to do while locked down in isolation.

[LMaxwell]

6 minutes ago, seaman11 said:

Well. Chargeback time. They cant find all my fcc's anyway. 

 NCL has said the credit card companies haven't accepted anything as collateral yet to continue to issue chargebacks 

Edited May 5, 2020 by LMaxwell

[Mulege]

If you see the rats leaving the ships it is a sign to sell their stock if not sooner. 

[LMaxwell]

24 minutes ago, Nclcruise1415 said:

I'm not about to believe every single article that comes from the media. NCL has been able to put off some loans for up to a year on some of their ships and they're currently working different avenues (like many other lines) to protect and increase capital.

 

As much as you like to read the fear mongering articles you can also find articles that are telling what the lines are doing to protect themselves.

How about the SEC Filing submitted by NCL themselves? That way you don't have to believe a single news source at all.  

 

https://www.sec.gov/ix?doc=/Archives/edgar/data/1513761/000110465920056537/nclh-20200416x8k.htm

[hallux]

I wonder if NCLH would sell off one of the smaller cruise lines (Regent or Oceania) to raise some capital to keep the main line, NCL, in business.

[tallnthensome]

I knew this was a possibility and why I cancelled back in March, 146 days out from my cruise date. Got my $5300 back a week or so back. I never once thought about a cruise credit over cash. I still have a couple hundred tied up with NCL for 2021 but won’t make a stink over that and will leave it. I wonder how many of the optimistic cheerleaders are going to back peddle now as fast as their legs will take them? 

[billyu]

It would be so sad to see them go under. So many memories from all the wonderful cruise the we have done with them.

 

But I must cancell my up coming cruise and try getting my deposit back. Money better is my pocket then lost.

 

[seaman11]

2 minutes ago, tallnthensome said:

I knew this was a possibility and why I cancelled back in March, 146 days out from my cruise date. Got my $5300 back a week or so back. I never once thought about a cruise credit over cash. I still have a couple hundred tied up with NCL for 2021 but won’t make a stink over that and will leave it. I wonder how many of the optimistic cheerleaders are going to back peddle now as fast as their legs will take them? 

their will still be cruises in the future, many different lines, many said "no cruising till 2021. "  NCL could still get an investor. prob fishing for it now. 

[vpearlkc]

14 minutes ago, seaman11 said:

Well. Chargeback time. They cant find all my fcc's anyway. 

Even you are giving up? Game over.

[jaja]

If I cancel my November cruise now...will I get my deposit back ???  

Just curious...

[seaman11]

1 minute ago, vpearlkc said:

Even you are giving up? Game over.

id keep my sept cruise if they had all my fcc in my account, but its not showing up and they dont know" where it is. "

 

i have carnival cruises that im pretty sure will go and they got money so they are good for awhile.  i also have $99 offers from rCL casino i can explore. 

[vpearlkc]

1 minute ago, seaman11 said:

their will still be cruises in the future, many different lines, many said "no cruising till 2021. "  NCL could still get an investor. prob fishing for it now. 

Yes cruising will go on, They can't just scrap those amazing ships that so many, myself included, have enjoyed for so many years.

[shof515]

Looks like they may not be that concerned anymore:

http://www.nclhltdinvestor.com/news-releases/news-release-details/ncl-corporation-ltd-announces-400-million-investment-l-catterton

[seaman11]

2 minutes ago, shof515 said:

Looks like they may not be that concerned anymore:

http://www.nclhltdinvestor.com/news-releases/news-release-details/ncl-corporation-ltd-announces-400-million-investment-l-catterton

thats what i figured, they release this news as a way of fishing for investors. 

[tallnthensome]

6 minutes ago, seaman11 said:

id keep my sept cruise if they had all my fcc in my account, but its not showing up and they dont know" where it is.. 

After today’s news, that’s not really shocking . 

[tallnthensome]

1 minute ago, seaman11 said:

thats what i figured, they release this news as a way of fishing for investors. 

They need more than $400 million. That will float them a few more months but that doesn’t even take into consideration the amount of money still owed in cash refunds. This fall season with Hurricanes and a full length season of flu/Corona starting in September will stick a knife in them .

[billyu]

Just now, tallnthensome said:

They need more than $400 million. That will float them a few more months but that doesn’t even take into consideration the amount of money still owed in cash refunds. This fall season with Hurricanes and a full length season of flu/Corona starting in September will stick a knife in them .

 

I wouldn’t think it will last very long after the next round of cancellations.

 

 

[Garywally57]

I saw that too. It's being reported elsewhere too. I have $1000 in cruise vouchers that will be gone then.

[pghflyer]

Devil is in the details. They issued their 2019 financials in a different market and were not a going concern. Well things have changed so they have to provide an update.  They are a going concern risk without additional financing.....and then proceeded to announce additional financing. If it all goes through, they are probably not a going concern for the next 6-9 months if nothing changes.  Anyhow, I believe this is the most pertinent from their actual filing:

 

"If we are successful in seeking additional equity or debt financing, as discussed below under the heading “We anticipate needing additional financing, and such financing may not be available on favorable terms, or at all, and may be dilutive to existing shareholders”, we believe the net proceeds received in such financing along with our ability to defer certain debt payments will be sufficient to provide the necessary liquidity meet our obligations during the next 12 months, including the maintenance of minimum levels of liquidity required by certain of our debt agreements. There can be no assurance, however, that we will be able to complete such financing, raise sufficient additional capital or that other factors will improve enough to offset operating losses. The substantial doubt about our ability to continue as a going concern may affect the price of our ordinary shares and the grade of our credit rating, may impact our relationship with third parties with whom we do business, including our customers, vendors, lenders and employees, may impact our ability to raise additional capital and may impact our ability to comply going forward with covenants in our debt agreements. In the event we are unable to secure additional financing, our ability to continue as a going concern over the next twelve months will depend upon a series of factors, including the duration of the layup of our ships, the speed with which, and the extent to which, bookings resume once ships are sailing again, the ability of travel agencies, suppliers and other vendors to resume operations."

[seaman11]

1 minute ago, tallnthensome said:

They need more than $400 million. That will float them a few more months but that doesn’t even take into consideration the amount of money still owed in cash refunds. This fall season with Hurricanes and a full length season of flu/Corona starting in September will stick a knife in them .

We will see. we know there is still plenty of ppl home not spending money for months and itching for a getaway. we also know by the protests and beach gatherings already at the end of april ,that many do not care about the risk. it is taking longer than i expected. as far as starting up slowly,  RCL still saying it will start up in july.  and carnival the 1st of aug.   i think it will depend on how fast these covid cases decline , va announced the curve is already flattened where i live.