Are Major Cruise Line Bankruptcies Back on the Table?

[rkacruiser]

7 hours ago, Mary229 said:

The new CEO of CCL is a lawyer by training.

 

Thanks for reminding me of this.  He also has a good background in finance as well, I recall.  

 

16 hours ago, navybankerteacher said:

but the stockholders of more than one major player are likely to lose their equity in chapter 11 reorganizations

 

I have much difficulty thinking that this will happen, at least to CCL.  When one considers the impact this would have on the Arison family, I believe that whatever needs to be done to preserve the company short of Chapter 11 reorganizations will be done.  

[navybankerteacher]

46 minutes ago, rkacruiser said:

 

Thanks for reminding me of this.  He also has a good background in finance as well, I recall.  

 

 

I have much difficulty thinking that this will happen, at least to CCL.  When one considers the impact this would have on the Arison family, I believe that whatever needs to be done to preserve the company short of Chapter 11 reorganizations will be done.  

Of course management will do everything they can to preserve their employers’ (the stockholders’) interests. But if they are unable to meet contractual obligations (interest and principal payments on the massive amounts of debt already run up to continue operations during COVID), either a voluntary chapter 11 reorganization filing or an involuntary bankruptcy proceeding are the options.  At some point, further borrowing (which is what I presume you mean by “…whatever needs to be done…”) will not be an option.

[rkacruiser]

2 hours ago, navybankerteacher said:

At some point, further borrowing (which is what I presume you mean by “…whatever needs to be done…”)

 

No, that is not what I meant.  I meant the dismantling of the Corporation by eliminating some of the brands.  Carnival Cruise Lines was the origin of the Corporation.  If need be, perhaps, a return to "square one" is going to be required.  

 

My opinion:  there are some brands that could be "lost", if possible, to help save the Corporation.

 

What is maddening to me, as a shareholder, the information for the financial results of the individual operating companies is not public information.  The least profitable, the brands that consistently loose money:  time to cut them loose.  

 

 

[Mary229]

1 hour ago, rkacruiser said:

 

No, that is not what I meant.  I meant the dismantling of the Corporation by eliminating some of the brands.  Carnival Cruise Lines was the origin of the Corporation.  If need be, perhaps, a return to "square one" is going to be required.  

 

My opinion:  there are some brands that could be "lost", if possible, to help save the Corporation.

 

What is maddening to me, as a shareholder, the information for the financial results of the individual operating companies is not public information.  The least profitable, the brands that consistently loose money:  time to cut them loose.  

 

 

I assume consolidation would be there first choice even though the ships may maintain their designations.  I see HAL and Princess further merging as they are already share  upper tier  management.
 

Gary Bembridge mentioned the Seabourn rumor again today in his video release 

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