WORRIED ABOUT LOSING MONEY IF THE CRUISE COMPANY DECLARES BANKRUPTCY? DON'T BE...

[SonuvaBeach]

Are you worried about losing your thousands ( sometimes TENS of thousands...like me) of dollars from a cancelled cruise if a cruise line goes bankrupt? Here is some good news from a CNN article from May 1, 2020.

https://www.cnn.com/travel/article/cruise-industry-coronavirus-aftermath/index.html

Scroll down to "What if the cruise company declares bankruptcy?"

 

[KirkNC]

Two of my four depart outside US so limited help.  Personally I think the bankruptcy risk is behind the major lines for at least twelve months.

 

Plus, why are you shouting in your title?

Edited May 13, 2020 by KirkNC

[npcl]

1 hour ago, SonuvaBeach said:

Are you worried about losing your thousands ( sometimes TENS of thousands...like me) of dollars from a cancelled cruise if a cruise line goes bankrupt? Here is some good news from a CNN article from May 1, 2020.

https://www.cnn.com/travel/article/cruise-industry-coronavirus-aftermath/index.html

Scroll down to "What if the cruise company declares bankruptcy?"

 

Too bad the FMC bond is only around 30 million per company.  Not anywhere near enough when CCL has 4.6 billion in customer deposits (according to their last 10-Q filing). So the Bond would cover a less then 1% in the case of liquidation.

 

The reporter did not understand the bond and its size.  Good in theory, no so much in practice.

Edited May 13, 2020 by npcl

[Doubt It]

Thank you npcl.

 

Well said. 

 

Good grief, RCL is trying to raise 3.3 billion in a bond offering now.  Humm, guess sitting on customers money which is not theirs is not sufficient.

 

Get to your credit card company now!

[iancal]

Your best protection is to go the credit card dispute route.

 

 Don't be lulled into waiting until the time frame for initiating a credit card dispute ends or procrastinate.  You cannot loose by initiating this process.

Edited May 13, 2020 by iancal

[whogo]

1 hour ago, npcl said:

Too bad the FMC bond is only around 30 million per company.  Not anywhere near enough when CCL has 4.6 billion in customer deposits (according to their last 10-Q filing). So the Bond would cover a less then 1% in the case of liquidation.

Using your figures, a cruiser would get almost $66 back from a $10,000 cruise. Don't expect it to be a speedy payment, either.

[FlaMariner]

When the government (President Obama) let GM declare bankruptcy and drown the bondholders, I've been waiting on my refund.....And GM still makes cars and the bondholders are still out their money.

 

A cruise line is no different.

 

Dispute w/credit card company while you can.  I would think a passenger's fare would be last in a long line of creditors.

Edited May 13, 2020 by FlaMariner
typo

[npcl]

34 minutes ago, whogo said:

Using your figures, a cruiser would get almost $66 back from a $10,000 cruise. Don't expect it to be a speedy payment, either.

 

More like the first in line would get paid until the money runs out.

[cruising sister]

2 hours ago, FlaMariner said:

When the government (President Obama) let GM declare bankruptcy and drown the bondholders, I've been waiting on my refund.....And GM still makes cars and the bondholders are still out their money.

 

A cruise line is no different.

 

Dispute w/credit card company while you can.  I would think a passenger's fare would be last in a long line of creditors.

On December 19, 2008 the first auto bailout was announced by President Bush and it only went down hill from there.   I agree it would be best to dispute money now while you can. 

[Himself]

Bankruptcy lets a company reorganize. It would have been good if GM had gone that route.  All the government did was protect union featherbedding..  

[Janet76]

So if CCL declares bankruptcy, my money is down the drain even if I file for CC dispute?  Our August sailing is canceled and we opt for a refund and was told to wait 60 days.  Should we wait 60 days or file for CC dispute now?

CCL owe us $6500. 

Edited May 13, 2020 by Janet76

[CruiserBruce]

1 hour ago, Himself said:

Bankruptcy lets a company reorganize. It would have been good if GM had gone that route.  All the government did was protect union featherbedding..  

Depends on what form of bankruptcy you are talking about. There are two kinds for personal, and two kinds for business. One type allows reorganization. One doesn't.

[DFD1]

12 minutes ago, Janet76 said:

So if CCL declares bankruptcy, my money is down the drain even if I file for CC dispute?  Our August sailing is canceled and we opt for a refund and was told wait 60 days.  Should we wait 60 days or file for CC dispute now?

CCL owe us $6500. 

 

IMO, there's nothing to be gained by waiting. In my view, anytime someone has your money and you're concerned about getting it back, the more proactive you are the more likely you are to recover your money.

[Janet76]

Thank you DFD1, my thought is same as yours. 

[iancal]

I certainly have more loyalty to my own financial well being than I do to any corporate body-cruise line or otherwise!  

 

Perhaps I am not as cavalier as others.

[Janet76]

Has anyone receive email confirmation when opting for  option #1 or # 2  on HAL website?  We received no email communication. Anyone request HAL to send  acknowledgment of refund? I must say, HAL is really terrible at this.  

Edited May 14, 2020 by Janet76