Norwegian Cruise Line on the brink of bankruptcy

Posted by Kyro Mitchell on 6 May 2020

One of the world’s largest cruise line operators, Norwegian Cruise Line Holdings LTD, has voiced its concerns about the company’s ability to stay operational due to lack of business as a result of the COVID-19 pandemic.

The company’s finical woes have been detailed in a filing with the Securities and Exchange Commission (SEC), stating that the company will need additional financing moving forward.

Norwegian Cruise Line, which is listed on the New York stock market, said in the filing: ‘Covid-19 has had, and is expected to continue to have, a significant impact on our financial condition and operations, which adversely affects our ability to obtain acceptable financing.’

The company said there’s ‘substantial doubt’ about its ability to continue, as the COVID-19 pandemic continues to shatter the cruise industry as a whole.

‘The current, and uncertain future impact of the Covid-19 outbreak, including its effect on the ability or desire of people to travel (including on cruises), is expected to continue to impact our results, operations, outlook, plans, goals, growth, reputation, cash flows, liquidity, demand for voyages and share price,’ the company said in the SEC filing on Tuesday [May 5].

However, Norwegian Cruise Line announced on 5 May that it had secured a massive $400 million investment from private equity firm L Catterton.

‘The industry has overcome numerous challenges in the past, and we expect that the industry will rebound and prosper with even further enhancements to their already rigorous health and safety protocols in place in the future,’ said global co-chief executive of L Catterton, Scott Dahnke.

‘The cruise industry has been very resilient over a long period of time, driven by strong secular tailwinds and a high level of guest satisfaction. People enjoy cruising, with many guests taking multiple voyages over time,’ he added.

Image: Twitter/ CruiseNorwegian

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