Just got my answer - a friend in Hawaii e-mailed me and said they has been expecting this and she guesses that Sept. 11th just put the nail in the coffin.

Oh well, what's a billion here and a billion there.

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Originally posted by Jekyll:
Leading financial analysts say American Classic Voyages may file for bankruptcy protection Friday.

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NEW YORK -- American Classic Voyages, the cruise industry's largest U.S.-flag carrier, could file for Chapter 11 bankruptcy protection by Oct. 19, according to an analysts' report obtained by TWCrossroads.
"Our industry sources report that American Classic Voyages may file for bankruptcy tomorrow," according to analysts Dean Gianoukos and Mike Fox of J.P. Morgan Chase & Co. AMCV officials did not respond to several calls seeking comment.

According to the report, "credit card companies were not allowing customers to book cruises on the line as a result of AMCV losing its insurance."

Over the past two weeks, several major travel insurance providers stopped writing policies for cruises on AMCV's four brands due to concerns about the company's financial stability.

AMCV will seek to reorganize operations by shedding its American Hawaii Cruises and United States Lines brands, and maintaining its ongoing project to build two new ships for Hawaii, according to the analysts.

"American Hawaii [and United States Lines] may disappear, but the company is expected to continue to operating its riverboats and will attempt to continue with its Project America."

AMCV recently reached an agreement with Northrup Gruman, parent company of Mississippi-based Ingalls Shipbuilding, to continue work on the two 1,900-passenger ships currently under construction at the yard.

The project, which is financed in part through U.S. government loan guarantees under the Title IX program, has been plagued by construction delays and cost overruns.

If AMCV's United States Lines brand were to shut down, it would mean the return of 1,214-passenger Patriot to Carnival Corp. According to the report, Carnival "holds the primary mortgage on the Patriot, (formerly the Nieuw Amsterdam) which AMCV cannot pay.

Dear Friends of AMCV,

On Friday, October 19, 2001, American Classic Voyages voluntarily filed petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. While this was a very difficult decision to make, we believe this process will allow us to rebuild our business in the aftermath of the September 11 terrorist attacks and continue our proud tradition as America’s cruise line.

Although the legendary Delta Queen steamboat will continue to cruise America’s Heartland, without interruption, we regretfully announce that following this weekend, we will cease all Hawaii cruises and Delta Queen riverboat cruises and coastal voyages. In the Spring of 2002, we intend to resume scheduled operations on the Mississippi Queen.

We would like to assure you that taking care of the passengers and employees who are aboard the ships is one of our very highest priorities. That is why we have made arrangements for each of our vessels to complete their original itineraries and return to their final scheduled destinations.

For more information, click here to access our press release. We understand that you may have additional questions regarding this announcement and what it might mean for you, and we encourage you to read the Frequently Asked Questions by clicking on the appropriate links below. Moving forward, we will make every effort to utilize this Web site to update you on significant developments as our reorganization proceeds.

Sincerely,

MIAMI, Oct. 19 /PRNewswire/ -- Carnival Corporation (NYSE: CCL) announced today that as a result of American Classic Voyages' (Nasdaq: AMCV) decision to cease its operations in Hawaii, it is in discussions with American Classic's management to determine the future status of the cruise ship MS Patriot on which a Carnival subsidiary holds an approximate $80 million first preferred ship mortgage.

Carnival said it had received assurances from American Classic that all steps would be taken to enable passengers and crew to disembark the ship without difficulty and, further, that crew members would be paid their wages and have their travel costs covered to return home. Carnival personnel will be working with American Classic shore-based employees in Hawaii to address issues that may arise in securing and laying up the ship pending its eventual disposition.

An American Classic Voyages' subsidiary purchased the 1,212-passenger, former Nieuw Amsterdam from Carnival's Holland America Line unit in October 2000 for approximately $114.5 million. Carnival and American Classic had recently renegotiated the terms of the mortgage on the vessel to defer principal payments in the hope that doing so would enable the ship to continue operating.

If returned, company officials have not determined how the vessel would be used.

#2

American Classic files for bankruptcy shelter By Michael Connor

MIAMI (Reuters) - Fallout from the Sept. 11 attacks claimed another U.S. cruise company Friday, when riverboat operator American Classic Voyages Inc said it had filed for bankruptcy court protection and was winding up most sailings.

American Classic, the second cruise company to file for Chapter 11 protection since last month's suicide attacks, said its vessels operating in Hawaii, the ms Patriot and the ss Independence, will stop sailing on Saturday after completing current cruises.

Four of the company's five Delta Queen vessels -- the American Queen, the Mississippi Queen, the Columbia Queen and the Cape May Light -- also will stop sailing over the next three days. Another ship, the Delta Queen steamboat, will continue to operate its Mississippi River voyages.

American Classic, which has 3,700 berths, said bookings had fallen by half in the four weeks after Sept. 11 and cancellations had jumped 30 percent.

The company, largely owned by billionaire Samuel Zell of Chicago, "faced a weakened cash position with no prospects for additional capital at this time," the company said in a statement.

"The tragic events of Sept. 11 dealt a devastating blow to our business that has made it impossible to continue our full operations," Chief Executive Phil Calian said.

Rumors the company was in financial trouble had swirled for weeks and picked up Thursday, when Nasdaq officials halted trading in American Classic's badly beaten shares after they touched a new low of 46 cents each.

Leading insurers two weeks ago stopped writing polices for American Classic passengers wanting insurance against mishaps, such as cruise cancellations. The move discouraged travel agents from booking passengers on the company's ships.

American Classic's Chapter 11 filing came as cruise operators scrambled to sell tickets and fill their expanding fleets since last month's suicide attacks in New York and near Washington and the hijacking in Pennsylvania.

Big cruise operators have slashed fares, redeployed ships to encourage drive-up customers in North America, and temporarily hiked ticket commissions for travel agents. Industry executives and analysts have predicted as many as six small cruise operators would be forced from the sector.

American Classic said lawyers had filed the Chapter 11 voluntary petition seeking permission to reorganize its businesses in Wilmington, Delaware. The company gave no listing of assets and debts. Under U.S. law, Chapter 11 does not require liquidation of a business, but allows a bankrupt company to continue operating under a judge's oversight while working out terms with debtors.

Known for its inland river cruises and advertising itself as a U.S.-owned cruise operator, American Classic has contracted to build two new, 1,900-passenger ships at the Ingalls boatyard in Mississippi.

The company said in its statement it hopes to work out a deal with Northrop Grumman Corp, owner of the shipyard, and the U.S. Maritime Administration to keep the ship-building projects underway.

Renaissance Cruises, a privately owned, 10-ship line, based in Fort Lauderdale, Florida, and specializing in exotic ports, filed for Chapter 11 bankruptcy court shelter on Sept. 25 and immediately ceased operations.

10:46 10-19-01

I agree w/ you I do think that Roayl Olympic will be next...

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is in discussions with American Classic's management to determine the future status of the cruise ship MS Patriot on which a Carnival subsidiary holds an approximate $80 million first preferred ship mortgage.

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My father was First Assistant Engineer on the DELTA QUEEN in the fifties, and was asked by Capt. Tom Greene to help bring her around from California before that. I have plodded her gently trembling decks as a Night Watchman and a paying passenger many a day and night. I own AMCV stock and am booked and deposited on the DQ for her Cincinnati homecoming trip in April. Yes, I do love the Ol' Gal and always will!

It is planned at this time for the company to remain under the same ownership, that is the common stock-holders of American Classic Voyages. Right now the core management will remain with current long time employees based in New Orleans. American Classic Voyages will be pared down to the two steamboats and the Project America newbuilding. Of course this is all subject to the approval of the U.S. Bankruptcy Court in Delaware.

Right now the best way to contact the company is at res@amcv.com as if phoned the caller only gets a pre-recorded message at this time. Also for further info check www.amcv.com .

God save the QUEEN!

I think it is illogical to compare river/coastal cruise ships with the Norway. They both provide two different products.

We had been looking into river cruises before Sept. 11th. This company's product was pretty expensive for what you got. They were not competitive with VikingRiver cruises.

The company has also been hurt by the extremely bad Internet Press about the Patriot. We would go back on the Independence or its replacement in a heartbeat, but would be reluctant to go on the Patriot.

It was Sam Zell and Phil Calian that concocted the plan for Project America/USL and hired Rod.

Rod is an experienced executive but the business plan hatched for this venture was flawed from the very begining.

They fired or forced out all the execs that knew how to run the riverboats profitably and over expanded, once again with a flawed business plan that:

1)No longer marketed the riverboats properly

2)Ordered those expensive Coastal Boats that were poorly designed

3)Paid too much for the Patriot which was not a good purchase; not large enough, contemporary enough

4)Spent too much money on USCG refits and no major cosmetic work

5)Allowed themselves to be lulled into a false sense of security with Sen Daniel Innouye's bogus legislation.

I'd hope that AMCV sees the light and sells the riverboat operations to Cruise West which is now run (sucessfully and profitably I might add) by a team of former execs from Delta Queen/AHC. And maybe Cruise West can see their way clear to take over the Hawaii operations with a big ship.

In Hawai'i:

• Independence: Passengers and crew disembark today in Kahului, Maui. The ship is set to sail back to Honolulu this evening and remain secured until an agreement is reached with the U.S. Maritime Administration about what to do.

1. the Mississippi River is not their territory and they would not know how to operate those kinds of vessels there. Thier way of thinking is totally T (ie <100tons) boat.

2. they bought the SPIRIT of OCEANUS last year and it has done nothing but bleed them white since. It was looking like the ship was going to spend the winter at the dock in Seattle until the company very recently pulled out a very sweet charter to the producers of the next SURVIVOR series which is going to take place in Tahiti. They're darn lucky to have that since they might not have made it throught the winter otherwise with almost $20M invested in that boat.

3. Jeff Krida may have come from the DQ operation to be CEO of Cruise West, but control rests with Dick West and since he took it over from his father, Chuck, 5 years ago, the company has steadily been losing its profitability and its key managers (who had made that company so successful in the early 90's) in the process. They are on track to loose between $3 & 4M for 2001 and more for 2002