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Norwegian going Bankrupt?


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Well it looks like it is official.  https://www.ibtimes.com/norwegian-cruises-warns-bankruptcy-filing-will-cruise-line-survive-2970731

 

I have a bad feeling that for the cruise we never made it to and the cruise we barely made it off the ship from that we will never see the refunds promised.   Does anyone have any news on if we will be getting our monies back as it does look like Norwegian is going down and out.

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6 minutes ago, Doubledime said:

Well it looks like it is official.  https://www.ibtimes.com/norwegian-cruises-warns-bankruptcy-filing-will-cruise-line-survive-2970731

 

I have a bad feeling that for the cruise we never made it to and the cruise we barely made it off the ship from that we will never see the refunds promised.   Does anyone have any news on if we will be getting our monies back as it does look like Norwegian is going down and out.

I just saw an article similar in another new source.    (I did look at yours and ended up interested in the article below in on retiring early due to COVID.  I'm in that situation, but I'm at least at my full bennie age.  I can't seeing my hospitality job coming back soon).

 

I think just about every cruise line is seriously thinking about their survival right now.  Can't sell off ships - no one to buy.  Carnival got a cash infusion from the Saudis, government isn't going to be amenable to bailing out a leisure industry which helped create the pandemic spread.   

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12 minutes ago, Doubledime said:

Well it looks like it is official.  https://www.ibtimes.com/norwegian-cruises-warns-bankruptcy-filing-will-cruise-line-survive-2970731

 

I have a bad feeling that for the cruise we never made it to and the cruise we barely made it off the ship from that we will never see the refunds promised.   Does anyone have any news on if we will be getting our monies back as it does look like Norwegian is going down and out.

 

 I would read all the articles...especially communications from NCL:

 

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When did the above information come out?  Does Norwegian plan to actually give refunds for the canceled cruises that people like us pre-payed for?  Any word on that.  We are out a good 10,000 for the two of them.

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37 minutes ago, Doubledime said:

When did the above information come out?  Does Norwegian plan to actually give refunds for the canceled cruises that people like us pre-payed for?  Any word on that.  We are out a good 10,000 for the two of them.

 

90 days has been the stated refund time. Some people have reported getting a refund sooner than that.

 

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1 hour ago, Doubledime said:

....Does Norwegian plan to actually give refunds for the canceled cruises that people like us pre-payed for?  Any word on that.  We are out a good 10,000 for the two of them.

 

Most likely not, sadly!

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Well, does anyone believe this? Do we take them at their word and roll the dice on our Alaska cruise scheduled for September, 2021? It’s a boatload of money to lose if they go under. We took advantage of our FCC and 20% off sale and got a heck of a deal. Alaska is #1 on my bucket list, but I’m not sure we want to chance it....

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At this point I am going to file a dispute with my credit card company.  I'm still waiting on an $800 refund that I requested back at the beginning of March (removal of gratuities and specialty dining package).   I was told this would take only 7-10 days at the time (so far I've received $36). I am also waiting on the refund of my canceled cruise  that I filed back on 4/10.    In light of this most recent information, I am not comfortable waiting 90 days.  I'll report back on my success (or not).   

 

My credit card company has always been very good about this type of thing.  We've been with them for years so I am hoping for resolution via this pathway so I can stop worrying about NCL's solvency.   

 

I'm pretty sure I can kiss my 4 cruise next certificates goodbye.    I have to use them by 3/2021.    Doesn't look like that will happen.   

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10 minutes ago, imkeepnup said:

Well, does anyone believe this? Do we take them at their word and roll the dice on our Alaska cruise scheduled for September, 2021? It’s a boatload of money to lose if they go under. We took advantage of our FCC and 20% off sale and got a heck of a deal. Alaska is #1 on my bucket list, but I’m not sure we want to chance it....

 

 NCL would want to stay in business and keep customers. I have rebooked for a November 2021, and a May 2022 cruise.

 

 

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1 minute ago, LasseKjus said:

Let's not confuse bankruptcy with going out of business. American Airlines went "bankrupt" in 2011 and has been growing ever since.

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.

 

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2 hours ago, pcakes122 said:

"Contingent upon completion of the transactions..."

Of course.  We have two cruises booked with NCL and are looking forward to both.  These are very difficult times for the world economy especially in the tourism business.  

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6 hours ago, tallnthensome said:

This is the 8th time this has been posted today .....

So sorry....but some of us are still working and just now getting the chance to check our e mails, Cruise Critic, etc.....so what would you suggest we do that have not been in front of our computers all day?  Geez.....as if we don't have enough to deal with....now we need attitude from each other???

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This is very very serious stuff.

This is similar to a 'run' on the banks.

Everybody would want their deposit back.

No body is going to book any more cruises.

 

But there is no government to stop this.

The other cruise lines would also be in trouble.

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7 hours ago, Doubledime said:

When did the above information come out?  Does Norwegian plan to actually give refunds for the canceled cruises that people like us pre-payed for?  Any word on that.  We are out a good 10,000 for the two of them.

 

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. 

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7 hours ago, 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. 

That is under-simplifying the purpose of an 8-K.  Nowhere does that language appear in the need for an 8-K, the purpose of which is to inform investors of any relevant current event.

The "going concern" was specifically wording used by NCLH which is why it caused such a stir both in the investment community  (down 23%) and the cruise community. 

And an 8-K is not a quarterly report.  It is only triggered when a significant event has changed the status of the company from what they filed in their 10-Q (quarterly) or 10-K (annual) report to the SEC.  An 8-K must be submitted within 4 business days of any occurrence. 

Edited by ECCruise
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http://www.nclhltdinvestor.com/node/12861/html

 

On May 5, 2020, Norwegian Cruise Line Holdings Ltd. (“NCLH”) provided an update regarding its liquidity and management’s plans in anticipation of additional financing transactions. In light of this update, NCLH updated its risk factors by providing additional risk factors, set forth below.

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9 hours ago, chloemonkey said:

so what would you suggest we do that have not been in front of our computers all day?

I generally browse the forum to see what's being discussed before trying to report a "scoop" as though I'm the first to think about posting the topic even though I haven't visited the site in a while.  For such a hot topic, seeing other threads on the topic isn't hard, they've been on page 1 since they started...

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12 minutes ago, hallux said:

I generally browse the forum to see what's being discussed before trying to report a "scoop" as though I'm the first to think about posting the topic even though I haven't visited the site in a while.  For such a hot topic, seeing other threads on the topic isn't hard, they've been on page 1 since they started...

 

Exactly. Not to mention making the subject "Norwegian Going Bankrupt" and then starting the post with "Well it looks like its official". NCL has not filed for bankruptcy (yet) nor is it official...

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30 minutes ago, webzila said:

 

Exactly. Not to mention making the subject "Norwegian Going Bankrupt" and then starting the post with "Well it looks like its official". NCL has not filed for bankruptcy (yet) nor is it official...

Not only that, but all the actions taken by NCLH that were just announced...issuing notes, issuing stock and the investment by a private equity fund, coupled with the debt holiday they had recently negotiated with lenders means that they're far less likely to need to file bankruptcy in the immediate future than they were prior to taking those actions. Now they should have enough cash on hand to continue operations for perhaps up to the next year.

 

The problem is that many people who read these announcements in the press have no idea what they really signify because they don't have the slightest understanding of corporate finance and absolutely no idea that wording of the type used in NCLH's SEC filings is required by law and regulation . 

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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. 

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