Pullmantur has filed for insolvency

[Homestyle]

Just read this on a Google feed:

 

Spanish cruise operator Pullmantur Cruises, which is partly owned by Royal Caribbean Cruises, has filed for reorganization under Spanish insolvency laws, Royal Caribbean Cruises said Monday.

Royal Caribbean Cruises owns 49% of the three-ship company, which caters to Spanish speaking vacationers from Spain and Latin America.

“Despite the great progress the company made to achieve a turnaround in 2019 and its huge engagement and best efforts of its dedicated employees, the headwinds caused by the pandemic are too strong for Pullmantur to overcome without a reorganization,” Pullmantur’s board of directors said in a statement.

 

In announcing the restructuring, Royal Caribbean Cruises said Pullmantur management notified employees of the decision after filings were made with Spanish authorities.

For now, Pullmantur has canceled all sailings through Nov. 15. Royal Caribbean Cruises said passengers booked on affected sailings would be offered the option to sail on ships operated by other Royal Caribbean Cruises brands.

Royal Caribbean Cruises is the parent company of its namesake Royal Caribbean brand as well as Celebrity Cruises and Azamara. It also is a part owner of German brand TUI Cruises through a joint venture.

While Pullmantur is little known to most Americans, its three ships are well-known to cruise fans. They include the former Celebrity Cruises ship Celebrity Horizon and former Royal Caribbean vessels Monarch of the Seas and Sovereign of the Seas. The ships have sailed for Pullmantur under the names Horizon, Monarch and Sovereign.

 

Hope that this isn't a trend! 

[Quo Vadis?]

https://www.msn.com/en-us/travel/tips/the-coronavirus-pandemic-has-claimed-its-first-cruise-line/ar-BB15PWUQ

 

Horizon was our first Celebrity Cruise Ship in 1994.

 

 

[Georgia_Peaches]

Sadly, I believe this will be the first of many lesser known (to me) cruise lines who follow this path.  Makes me fearful for how long the majors can financially hold out.  Is it for as long as they say?

[mahdnc]

Makes sense as I saw this posted yesterday: Is Pullmantur Cruises Ending Operations?

[hcat]

Was inevitable.. Wonder how many cruisers from that line will be willing to switch to other ships?

 

We were on Sovereign way back when with Royal C,  and switched over to Celebrity after that cruise!  Good move for us although we have sailed other Rotal C ships now and then.

 

Wonder what's next,

[mafig]

"passengers booked on affected sailings would be offered the option to sail.........."

 

I guess this means the passengers could not get refunds, only the option to rebook?

 

 

[phoenix_dream]

51 minutes ago, mafig said:

"passengers booked on affected sailings would be offered the option to sail.........."

 

I guess this means the passengers could not get refunds, only the option to rebook?

 

 

I don't think we have enough details yet to make that assumption.  Not saying it's wrong, but too little info to tell from a press release.

[Miaminice]

Please consider that EU-Insolvency Laws apply. 
And most passengers are probably Spanish or EU citizens.

 

By EU law, cruises are considered as package holidays (regardless if travel package was booked). They are covered by a security certificate which secures payments in case of insolvency.

Edited June 23, 2020 by Miaminice

[mnocket]

20 hours ago, mafig said:

"passengers booked on affected sailings would be offered the option to sail.........."

 

I guess this means the passengers could not get refunds, only the option to rebook?

 

 

That's actually a great outcome for booked guests.  Typically when a company goes bankrupt, their assets are paid to secured debts first, followed by priority debts, and then unsecured debts.  Ticket holders fall in the last category and there is almost never any money left after paying the superior debt holders to refund their money.  RCL is actually being generous in stepping in and offering these people credit on their other subsidiarie's lines.

[alley24]

What will happen to Pullmantur  FCC will they be valid on Royal?