January 5, 2004
According to its latest statement, Royal Olympic Cruise Lines, Inc. says it has filed for reorganization – for Olympia Explorer and Olympia Voyager – under Chapter 11 of the United States bankruptcy code. The move to file Chapter 11 was a result of the company's inability to reach an agreement with lenders regarding a restructuring of $250 million in loans that were used to finance acquisition of the two ships. Both vessels have been restricted to U.S. reports since the financial troubles became public in mid-December.
At this point, the cruise line, which had canceled the December 22 and January 5 sailings of Olympia Explorer, has also canceled the January 2 cruise for Olympia Voyager. The Olympia Explorer is being held in Los Angeles, for the time being, and Olympia Explorer is docked at Port Everglades.
No further cruises have been cancelled at this time. The bankruptcy filing impacts only these two ships; the other four in the Piraeus-based cruise fleet remain operational. We'll continue to keep you posted.