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» Cruise Talk   » Cruise Lines   » Ambassadors close to going under

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Author Topic: Ambassadors close to going under
mike sa
First Class Passenger
Member # 5957

posted 04-02-2009 01:40 AM      Profile for mike sa   Author's Homepage   Email mike sa   Send New Private Message      Edit/Delete Post  Reply With Quote 
In their most recent filing they have made clear that if they cannot raise more finance it looks like they will cease trading. Revenues down, costs up and they have been unable to sell their unwanted assets.

Perhaps Carnival will pick up Windsurf etc for a song !

They would be the 1st "big" casulaty of the downturn in the cruise industry ?


Posts: 2272 | From: Durban, South Africa | Registered: Sep 2005  |  IP: Logged
Linerrich
First Class Passenger
Member # 4864

posted 04-02-2009 07:02 AM      Profile for Linerrich   Email Linerrich   Send New Private Message      Edit/Delete Post  Reply With Quote 
Yes, all the signs of demise are there. We've been having a lot of trouble getting commissions paid from them, which is never good.

Rich


Posts: 4210 | From: Miami, FL | Registered: Jul 2004  |  IP: Logged
rd77
First Class Passenger
Member # 2117

posted 04-02-2009 07:51 AM      Profile for rd77   Email rd77   Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by mike sa:
Perhaps Carnival will pick up Windsurf etc for a song !
[/QB]

Why would they do that? They sold Windstar to Ambassadors just a few years ago to get rid of them!


Posts: 1037 | From: The Hague, Netherlands | Registered: Jun 2001  |  IP: Logged
PamM
First Class Passenger
Member # 2127

posted 04-02-2009 11:26 AM      Profile for PamM   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
Perhaps someone can add further detail, but I seem to recall Carnival Corp provided the finance to Ambassador for the purchase of Windstar and the vessels are held as collateral anyway; so they wouldn't need to buy anything back?

Pam


Posts: 12176 | From: Cambridge, UK | Registered: Jun 2001  |  IP: Logged
ahrpd
First Class Passenger
Member # 6229

posted 04-02-2009 11:52 AM      Profile for ahrpd     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by PamM:
Perhaps someone can add further detail, but I seem to recall Carnival Corp provided the finance to Ambassador for the purchase of Windstar and the vessels are held as collateral anyway; so they wouldn't need to buy anything back?

Pam


You're right Pam.

In February 2007, Carnival sold Windstar to Ambassadors. The price represented $US40m in cash and assumption of liabilities, plus $US60m in mortgage financing provided by Carnival and payable over 10 years, with Windstar's fleet as collateral. So they would get their ships back as you said.

Tony


Posts: 948 | From: gibraltar | Registered: Feb 2006  |  IP: Logged
gpcruisedude
First Class Passenger
Member # 3533

posted 04-02-2009 12:02 PM      Profile for gpcruisedude   Email gpcruisedude   Send New Private Message      Edit/Delete Post  Reply With Quote 
If Ambassadors went under that would really make things alot more complicated for selling off whats left of the old Majestic fleet!
Posts: 865 | From: Grande Prairie,Alberta | Registered: Dec 2002  |  IP: Logged
Frank X. Prudent
First Class Passenger
Member # 1723

posted 04-03-2009 12:51 AM      Profile for Frank X. Prudent   Email Frank X. Prudent   Send New Private Message      Edit/Delete Post  Reply With Quote 
Ambassadors International raped the American rivers cruise industry, and its own stockholders. Three years ago after Ambassadors International purchased The Delta Queen Steamboat Co. Ambassadors stock traded in the upper forties, and now it's below forty cents. Two of the industries potentially most lucrative boats, the AMERICAN QUEEN and EMPRESS of the NORTH have been returned to the U.S. Maritime Administration, the Federal entity that guaranteed their construction loans. Ambassadors International refused to pay the mortgages and was unable to sell them. The MISSISSIPPI QUEEN has had her interior gutted, and she sits forlorn at the Perry Street Wharf in New Orleans. Now, the DELTA QUEEN is leased to a hotel operator in Chattanooga, TN and is being converted into a bed and breakfast. Because of Ambassadors International management's hubris, the DELTA QUEEN can not currently run as an overnight common carrier. Infact she no longer has a U. S. Coast Guard Certificate of Inspection, and to obtain one would literally require an act of Congress.

I don't think Ambassadors International being forced into bankruptcy could make anything more complicated than it already is. Infact if forced into bankruptcy, the DELTA QUEEN might actually benefit. She could potentially be sold at a realistic price to someone whom has the necessary political clout and skill to operate an American flagged paddlewheel steamboat. The unrealistic ten million dollar price tag that Ambassadors International reportedly has on the DELTA QUEEN has been, and will continue to be, a major stumbling block in the efforts to save the DELTA QUEEN. The market would decide what the DELTA QUEEN is worth if sold at bankruptcy auction. Of course this is quite risky, but risk is part of the American entrepreneurial spirit.

My prayer is that someone rises to the occasion, and saves the DELTA QUEEN for others to enjoy as I have since I was a child. Truly this country is not as well off as when a direct link to Mark Twain and his era still carries overnight passengers. The sad loss of the cry "Steamboat a comin'!" should never had happend. Hopefully, one day it will once again be heard echoing along the main street of sleepy river towns, and future generations will still be able to witness the arrival of a genuine steamboat just as steamboats have been doing on the rivers of America since 1807.


Posts: 577 | From: Covington, Kentucky, U.S.A. | Registered: Dec 2000  |  IP: Logged
lasuvidaboy
First Class Passenger
Member # 4527

posted 04-03-2009 01:57 AM      Profile for lasuvidaboy     Send New Private Message      Edit/Delete Post  Reply With Quote 
Ashame the beautiful American Queen is laid up. Hopefully she will retrun to service in the future.
Posts: 7654 | From: Hollywood Hills/L.A. | Registered: Mar 2004  |  IP: Logged
mike sa
First Class Passenger
Member # 5957

posted 04-16-2009 01:04 AM      Profile for mike sa   Author's Homepage   Email mike sa   Send New Private Message      Edit/Delete Post  Reply With Quote 
Ambassadors have missed a $1.8 million interest payment, they now have until May 15th to make the payment or the principal can be called in thus closing them down.
Posts: 2272 | From: Durban, South Africa | Registered: Sep 2005  |  IP: Logged

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