Possible More Financial Problems for RCI

[baldilocks]

The Miami Herald has just published an article that Royal's contracted employee payment company, Wirecard, has $2.1 billion dollars unaccounted for. Employees use Wirecard accounts to get paid and save. RCI could be on the hook for a lot of dollars if this gets nasty. It could have the potential to push Royal into Chapter 11 bankruptcy. Hope the auditors find the money and that everything will be OK. 

[BigAl94]

4 minutes ago, baldilocks said:

The Miami Herald has just published an article that Royal's contracted employee payment company, Wirecard, has $2.1 billion dollars unaccounted for. Employees use Wirecard accounts to get paid and save. RCI could be on the hook for a lot of dollars if this gets nasty. It could have the potential to push Royal into Chapter 11 bankruptcy. Hope the auditors find the money and that everything will be OK. 

If they did, Miami Herald are two days late to the party, there have been rumours about Wirecard for several months and the story broke on Thursday after auditors stated they couldn't find $2.1 bn. The CEO resigned yesterday.  Probably terminal for Wirecard but unlikely to have any effect on RCL

[Fouremco]

While Wirecard can't account for $2.1 billion, there is nothing that I've read as yet that indicates what the financial liability might be for individual clients.

https://www.cnn.com/2020/06/19/tech/wirecard-fraud-tech-accounting/index.html

https://ca.finance.yahoo.com/news/wirecard-2-1-billion-hole-071914093.html

Edited June 20, 2020 by Fouremco

[baldilocks]

4 minutes ago, BigAl94 said:

If they did, Miami Herald are two days late to the party, there have been rumours about Wirecard for several months and the story broke on Thursday after auditors stated they couldn't find $2.1 bn. The CEO resigned yesterday.  Probably terminal for Wirecard but unlikely to have any effect on RCL

 

I disagree. Wirecard was contracted by RCI to pay its employees. If an employee is missing pay, Royal will be on the hook. I'm sure if the money is not found,  the lawyers will have field day with all involved. We just don't know what is in the contract between Royal and Wirecard.

[BigAl94]

13 minutes ago, baldilocks said:

 

I disagree. Wirecard was contracted by RCI to pay its employees. If an employee is missing pay, Royal will be on the hook. I'm sure if the money is not found,  the lawyers will have field day with all involved. We just don't know what is in the contract between Royal and Wirecard.

Where are you getting your information from to suggest RCI employees have not been paid?

[hcat]

There were rumors  awhile ago that island excursion vendors were not paid by RC or X..Never heard any follow up on that...I think this story will be around for awhile

 

2.1 bn is  a very big amt to be " unaccounted " for...The delayed refunds could never cover all that..

[jelayne]

It would seem to me that it would take many missed paychecks to rack up 2.1B in unpaid wages.

If employees were not getting paid I can’t imagine a lot of them not raising the issue To RCI management and some going to the  press.  

[ipeeinthepool]

Maybe I'm not reading it correctly, but I thought the overall  unaccounted for funds at Wirecard total $2.1 B.  I can't find anything that says RCL has any losses or how much of the that amount might be part of RCL accounts.

[marieps]

If RCL had any exposure, they'd have to file a disclosure with the SEC.  There's been nothing since disclosing their latest financing deal.  I've heard zip about anyone not getting paid.

[C-Dragons]

4 minutes ago, marieps said:

If RCL had any exposure, they'd have to file a disclosure with the SEC.  There's been nothing since disclosing their latest financing deal.  I've heard zip about anyone not getting paid.

Agreed. And RCL was not the only company using Wirecard's services, so their account may not have been involved.

[yorky]

Jeez this place is depressing these days.

[Covepointcruiser]

Sure is, we need some good news.   Newspapers no longer print good news and the evening news in the US broadcasts only negative news.   Hopefully we can do better on cruisecritic.

[sfaaa]

If RCL has theft insurance, it is the insurance company on the hook after RCl paying the deductible.

[baldilocks]

6 hours ago, BigAl94 said:

Where are you getting your information from to suggest RCI employees have not been paid?

 

IF you read what I wrote it  says 'if an employee is missing pay', not that an employee is missing pay'. 

[Shadow9612]

I can't get my head around 2.1 BILLION unaccounted for.   I would be distraught if I lost  $20.

[ipeeinthepool]

10 hours ago, Covepointcruiser said:

 we need some good news.  ...  Hopefully we can do better on cruisecritic.

 

I just got a good deal on my car insurance and it even included a $40 refund. 😉

Edited June 21, 2020 by ipeeinthepool

[hcat]

13 hours ago, ipeeinthepool said:

Maybe I'm not reading it correctly, but I thought the overall  unaccounted for funds at Wirecard total $2.1 B.  I can't find anything that says RCL has any losses or how much of the that amount might be part of RCL accounts.

Makes more sense than it being ALL Royal employees

[TeeRick]

6 hours ago, ipeeinthepool said:

 

I just got a good deal on my car insurance and it even included a $40 refund. 😉

Sounds like a Geico commercial.

[opa&oma]

21 hours ago, hcat said:

There were rumors  awhile ago that island excursion vendors were not paid by RC or X..Never heard any follow up on that...I think this story will be around for awhile

 

2.1 bn is  a very big amt to be " unaccounted " for...The delayed refunds could never cover all that..

We need to try to keep "rumors" off Cruise Critic.

[Fouremco]

5 minutes ago, opa&oma said:

We need to try to keep "rumors" off Cruise Critic.

Without rumours and idle speculation, posting numbers would be decimated! 

[not-enough-cruising]

On 6/20/2020 at 10:29 AM, baldilocks said:

The Miami Herald has just published an article that Royal's contracted employee payment company, Wirecard, has $2.1 billion dollars unaccounted for. Employees use Wirecard accounts to get paid and save. RCI could be on the hook for a lot of dollars if this gets nasty. It could have the potential to push Royal into Chapter 11 bankruptcy. Hope the auditors find the money and that everything will be OK. 

Why would RCI be on the hook? If Chase bank comes up short on my account, can I go after my employer to pay me again because my bank “misplaced” the last direct deposit? No no no, and RCI has ZERO exposure here either. 

Edited June 21, 2020 by not-enough-cruising

[sfaaa]

11 hours ago, ipeeinthepool said:

 

I just got a good deal on my car insurance and it even included a $40 refund. 😉

 LiMu Emu & Doug have your back.

[terrydtx]

2 hours ago, not-enough-cruising said:

Why would RCI be on the hook? If Chase bank comes up short on my account, can I go after my employer to pay me again because my bank “misplaced” the last direct deposit? No no no, and RCI has ZERO exposure here either. 

I agree, Wirecard and their management are on the hook for the wage payments. As long as RCL paid the money to Wirecard, RCL has no exposure. It is tragic that these hard workers are not getting paid but RCL is not to blame.

[HS2BS]

Market watch is reporting that Royal Caribbean’s Spanish cruise line JV Pullmantur has filed for reorganization.

 

Hal

[TeeRick]

And so it begins.....

 

https://www.marketwatch.com/story/royal-caribbeans-spanish-cruise-line-jv-pullmantur-files-for-reorganization-2020-06-22