Spanish cruise line Pullmantur has filed for reorganization
under Spain’s insolvency laws.
Cruises Investment Holding owns 51% of the cruise line, and
Royal Caribbean Cruises Ltd. owns the other 49%. RCCL said they filed for the
reorganization of the Pullmantur joint venture due to the impact of the
Covid-19 pandemic.
“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 said in a statement.
The cruise line canceled sailings on the line’s three ships
through Nov. 15. RCCL said that guests booked to sail on Pullmantur would be
offered the option to sail on Royal Caribbean International or Celebrity
Cruises.
Pullmantur’s three ships are all former Royal Caribbean
International vessels: the Monarch, Sovereign and Horizon (launched as the
Nordic Empress in 1990).
There are indications that Pullmantur could reduce its fleet
to one ship, said UBS analyst Robin Farley in a note on Tuesday. She said that a
ship broker was listing the Monarch and Horizon for sale, indicating that “perhaps
there could be a reorganization of operations with the one ship remaining.”
However, she also reported that “items of value were being
dismantled from the interior of the ships, so they may be sold for scrap rather
than operations.”
“Pullmantur’s three ships could be scrapped since they are
all about 30 years old, and now that there are younger ships available for
sale, older ships are less likely to find a buyer,” Farley said.
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This report was updated on June 23 with information about Pullmantur putting ships up for sale.