German shipyard Lloyd Werft in Bremerhaven has filed for bankruptcy today. Yard workers were told at a noon meeting. More details to follow…

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according to the State of Bremen's economics senator Hartmut Perschau,
Lloyd Werft was forced to declare bankruptcy because Norwegian Cruise
Line did not make a progress payment for "Pride of America" which was to
be received on January 30th.

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This is going to have an impact on a lot of things. Especially the poor workers. What a horrible lunch hour that must have been!

The statements and questions you mentioned make a lot of sense, Pam. It makes me wonder what the work force was working on at the time? The Norway? The POA? Have they done anything about righting the ship? I haven't heard a thing about salvaging and repair.

Could be that even if they had to borrow against income from the CV that two refurbish/repair jobs just isn't going to cover the cost of the huge task of repairing POA. It's true that the insurance money is a long way coming.

Again, just speculating.

Sure is bad news for all involved. Wonder what NCL will do with Norway now. It may give some clue as to how serious they are about returning her to service.

Michael534

[ 02-09-2004: Message edited by: Michael534 ]

I receieved some inside info on the POA accident. My source, obviously wishing
to remain anonymous, stated:

"the reason that POA "fell over" was that she was too tightly tied on the
starboard side; literaly with no flexibility, and the unusually high tide
(reputed at 15 feet) meant that she was 'lifted up' - but the ties were not
flexible enough, and she literall fell against the Pier/Dock as the tidal surge
got to her before the workers could release her. She then took water on through
the openings on starboard side, and "was a gonner" before anybody knew enough
about it !!"

Lloyd Werft has repeatedly said that they would certainly understand if
NCL would not be making the payment as scheduled. They payment was due
as per the original contract for the vessel's completion. This has
nothing to do with the accident.

However, please keep in mind that resuming work on "Pride of America"
including the salvage operation does cost lots of money. Lloyd Werft has
to pay for this, as the insurance will only pay once the ship has been
salvaged and the complete amount of the damage has been assessed.

So, you are correct that it *is* more than the non-progress payment, but
everything is linked to the "PoA" accident. "CostaVictoria" was
delivered on budget, by the way, and already inked orders include the
reburbishment of "QE2" and "Oriana" this spring.

Smit was awarded the contract back on 16 Jan for the salvage of POA. See Smit's site. But as to whether anything has actually been done, I haven't heard, or seen mentioned anywhere.

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Draikar posted:
Im starting to think PRIDE OF AMERICA is a bad luck ship.

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Marlowe posted:
On another board I went so far as to venture that NCL might be using the flooding of the PoA as a way to get out of their taking delivery of the ship.

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And I am starting to think both NCL and NCL America are jinxed

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Originally posted by Ðraikar:
Im starting to think PRIDE OF AMERICA is a bad luck ship.

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How could you say that Draikar? How could any ship so sleek, graceful and pretty as well as having such a beloved name "Pride of America" be unlucky?
Impossible!

SpiritSailor

Howard Dicus

More details have surfaced on the sea change in the fortunes of Lloyd Werft, the Bremerhaven, Germany, shipyard that was completing the Pride of America when it sank at the dock Jan. 14, submerging three decks and immersing the engines in saltwater.

When the shipyard filed for bankruptcy protection from creditors earlier this week, the initial report said the move had been set off by the withholding of payments by Norwegian Cruise Line, a subsidiary of Malaysia-based Star Cruises, but the amount was not given.

The Straits Times of Singapore now reports that Lloyd Werft is specifically waiting for $48 million it was scheduled to be paid at the end of January. NCL has not denied withholding payment, but rather said it has made "appropriate" payments according to the delivery schedule, which is now slipping.

The shipyard itself said it has hired Smit, a well-known salvage firm in the Netherlands, to refloat the Pride, and that this will be undertaken next week. Until the liner floats, neither NCL nor the shipyard can be sure how much damage has been done, how much it will cost to repair, or how long it will take to do it.

NCL decided within a day or two of the sinking not to wait for this information but to sail full steam ahead with Plan B. A second ship, the Pride of Aloha, not a new vessel but one being refurbished, was originally meant to enter service late in the year, taking overflow business from the Pride of America, but now will enter service itself in July as the primary vessel for interisland cruises until NCL can get hold of a completed Pride of America. NCL this week again confirmed that it is still hiring locally, and has hundreds more openings.