Royal Caribbean's Spanish cruise line files for reorganization
The board of directors directly blamed the coronavirus pandemic for the move
Spanish cruise line Pullmantur Cruceros, a joint venture between Royal Caribbean Cruises Ltd. and Cruises Investment Holding, has filed for reorganization under Spanish insolvency laws, citing the effects of the coronavirus 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,” the Pullmantur's board of directors said in a statement. Royal Caribbean owns a 49 percent stake in Pullmantur.
“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, (iStock)
CARNIVAL CRUISE EXTENDS SAILING PAUSE UNTIL SEPT. 30
News of the company’s reorganization comes only weeks after Pullmantur announced it would be suspending all cruises through November, as a result of “the uncertainty situation regarding both the evolution of the COVID-19 and the way in which it will be possible to travel once the restrictions imposed by the different countries are lifted.”
At the time, Pullmantur said it hoped to resume operations after reevaluating health and safety protocols.
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Guests scheduled to sail with Pullmantur are being offered alternate excursions on Royal Caribbean International or Celebrity Cruises voyages, Royal Caribbean confirmed. Customers will be contacted about rebooking “in the near future,” the company said.
Crew members still aboard Pullmantur’s three ships — the Monarch, the Sovereign and the Horizon — will be returned home.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| RCL | ROYAL CARIBBEAN GROUP | 241.49 | +3.92 | +1.65% |
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Pullmantur, which was formed in 1971, was Spain’s largest cruise operator when Royal Caribbean first announced its interest in purchasing the company in 2006.
Royal Caribbean currently operates four other cruise companies — Royal Caribbean International, Celebrity Cruises, Azamara and Silversea Cruises — and owns 50 percent of TUI Cruises, a German cruise operator.