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» Cruise Talk   » Ocean Liners and Classic Cruise Ships   » ISRAELI RIO CRUISES HAS GONE BUST

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Author Topic: ISRAELI RIO CRUISES HAS GONE BUST
Neil - Ex P & O & PRINCESS CRUISES
First Class Passenger
Member # 5641

posted 07-14-2011 03:38 PM      Profile for Neil - Ex P & O & PRINCESS CRUISES   Author's Homepage   Email Neil - Ex P & O & PRINCESS CRUISES   Send New Private Message      Edit/Delete Post  Reply With Quote 
The Israeli company Rio Cruises, who recently bought the Louis Cruises ship 'The Aegean Pearl ', is reported as having gone bankrupt.

It is reported that the 320 crew are sitting in on the ship at Ashdod as they have not been paid.

The ship was built in 1971, as the NCL Cruise ship Southward.

She was the sister ship to the P & O cruises Spirit of London which is now laid up and anchored off the Malaysian coast and reported to be sold.
.


Posts: 2355 | From: Dunstable, Bedfordshire. 30 miles north of London | Registered: May 2005  |  IP: Logged
SSTRAVELER
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posted 07-14-2011 08:26 PM      Profile for SSTRAVELER     Send New Private Message      Edit/Delete Post  Reply With Quote 
She was sold for scrap a few months back, the ex. Spirit of London that is. There were some last minute tire kicking gong on by some people who wanted to start up a cruise line but the reports are that mechanically she is pretty beat up.

Be odd if the Southward also goes to scrap now. The sister ships would really be the first of the modern era cruise ships to go to scrap and going together would be irony.

Or does Louis hold some form of a mortgage on the Southward so that they might end up with her back?


Posts: 757 | From: New York | Registered: May 2008  |  IP: Logged
rd77
First Class Passenger
Member # 2117

posted 07-15-2011 02:54 AM      Profile for rd77   Email rd77   Send New Private Message      Edit/Delete Post  Reply With Quote 
The RIO is run by Caspi Shipping, the same outfit that ran the notorious DREAM PRINCESS (ex-SONG OF NORWAY). That's the vessel that sprang a leak at the quayside, I'm sure you'll find some info when googling her.

The FLAMENCO I (ex-SPIRIT OF LONDON) was sold for scrap as far back as last year, but apparently there is an argument going on between the scrap buyer and the selling party. The scrap buyer only found out later that the vessel's engines are completely shot. Now, she needs a tug to get to Alang and the scrap buyer is not willing to pay for that. So, it seems she is still marooned of Port Klang.


Posts: 1037 | From: The Hague, Netherlands | Registered: Jun 2001  |  IP: Logged
Neil - Ex P & O & PRINCESS CRUISES
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posted 07-15-2011 05:58 AM      Profile for Neil - Ex P & O & PRINCESS CRUISES   Author's Homepage   Email Neil - Ex P & O & PRINCESS CRUISES   Send New Private Message      Edit/Delete Post  Reply With Quote 
The company owning the Rio is shown as Eagles Shipping Holding SA of Piraeus !

Her classification status is shown as suspended on the 29th May 2011.


Posts: 2355 | From: Dunstable, Bedfordshire. 30 miles north of London | Registered: May 2005  |  IP: Logged
Neil - Ex P & O & PRINCESS CRUISES
First Class Passenger
Member # 5641

posted 07-15-2011 05:56 PM      Profile for Neil - Ex P & O & PRINCESS CRUISES   Author's Homepage   Email Neil - Ex P & O & PRINCESS CRUISES   Send New Private Message      Edit/Delete Post  Reply With Quote 
News in indicates that a payment due to the ships previous owners was not made !

Previously the ship was owned by a company within the Louis Group.

It is reported that Louis Group have been helping with some of the arrangements for the crew stuck on the Rio.

Depending on the sales agreement could depend if Louis Group could reclaim the ship !
.


Posts: 2355 | From: Dunstable, Bedfordshire. 30 miles north of London | Registered: May 2005  |  IP: Logged
sslewis
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posted 07-16-2011 10:19 AM      Profile for sslewis   Author's Homepage   Email sslewis   Send New Private Message      Edit/Delete Post  Reply With Quote 
The towing business is rubbish!
They towed ssNorway half the way around the world before being beached. Her engines were definitely blasted!
I bet the price of scrap will eventually attract a buyer for the former Spirit of London, perhaps the ones that did Saga Rose???

Posts: 2513 | From: Shipspotting Solent shores when weather allows.... | Registered: Feb 2003  |  IP: Logged
Neil - Ex P & O & PRINCESS CRUISES
First Class Passenger
Member # 5641

posted 07-16-2011 06:07 PM      Profile for Neil - Ex P & O & PRINCESS CRUISES   Author's Homepage   Email Neil - Ex P & O & PRINCESS CRUISES   Send New Private Message      Edit/Delete Post  Reply With Quote 
Quote
' The towing business is rubbish!
They towed ssNorway half the way around the world before being beached. Her engines were definitely blasted! '


If the original buyer of the ship had been told that he could run the engines and get the ship to Alang where is that rubbish ?

It is possible that the costs of hiring a tug to tow the ship to Alang were not allowed for in the price paid for the ship.

There may also be insurance to be paid for to cover any loss of the ship while it is being towed.

ss Norway was a completely different case as it was known her engines were disabled by the explosion and she would require to be towed to Alang !
.

[ 07-16-2011: Message edited by: Neil - Ex P. & O. S. N. Company. ]


Posts: 2355 | From: Dunstable, Bedfordshire. 30 miles north of London | Registered: May 2005  |  IP: Logged
SSTRAVELER
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posted 07-16-2011 10:37 PM      Profile for SSTRAVELER     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by Neil - Ex P. & O. S. N. Company.:
Quote
If the original buyer of the ship had been told that he could run the engines and get the ship to Alang where is that rubbish ?


I guess you have never bought a used car .... lol! Buyer beware. That's why you investigate and inspect before you hand over the money!

Just because someone told the buyer he could sail it away into the sunset does not mean he did not get bad information. I agree if he did not check the engines he could have paid more than the rusting hulk is worth based on the value of the scrap, the cost of getting it to the scrapyard, insurance costs, etc. but where the fault in that mistake ??

In the world we live in today that sounds like a lawsuit with the courts left to figure out if the buyer has a case against the seller and if the seller provided any warranties that were false or misleading and if the buyer failed to check out what he was buying.

But from the word on the seas the buyer has also been trying to resell the ship for something other than scrap. I know one potential who was looking into the ship for a new start up cruise line. Several of us told this potential to be careful that the word was the engines were shot. Since it is pretty common knowledge or at least speculation that the engines are shot that also hurts the buyer's case to argue misrepresentation.

[ 07-16-2011: Message edited by: SSTRAVELER ]


Posts: 757 | From: New York | Registered: May 2008  |  IP: Logged
rd77
First Class Passenger
Member # 2117

posted 07-19-2011 03:33 AM      Profile for rd77   Email rd77   Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by Neil - Ex P. & O. S. N. Company.:
The company owning the Rio is shown as Eagles Shipping Holding SA of Piraeus !

True. But the end user of the ship was Caspi Shipping. However, the fact that the vessel was still owned in Greece could well mean that Louis is still involved. I sure hope so. I would hate to see this pretty ship go for scrap right now.


Posts: 1037 | From: The Hague, Netherlands | Registered: Jun 2001  |  IP: Logged
Neil - Ex P & O & PRINCESS CRUISES
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posted 07-19-2011 05:34 AM      Profile for Neil - Ex P & O & PRINCESS CRUISES   Author's Homepage   Email Neil - Ex P & O & PRINCESS CRUISES   Send New Private Message      Edit/Delete Post  Reply With Quote 
ssTraveller

I do not know what world you are living in but at present I have two recently purchased new cars, a classic 1969 built car and five vans for my business so rest assured I have plenty of experience in buying cars and vehicles.

If the information provided on the ship, when it was advertised for sale, mentioned that the engines were in working order than the buyer has every reason to take action against the seller.

I note you call her a ' Rusting Hulk ' .

The last notice I saw about her sale, published in October 2010, said that her cabins and cabin facilities were in good condition although carpets thoughout the ship needed replacing.

Some attention was required to her air conditioning, laundry and her galley !

That I would say is not the description for a rusting hulk !
.

[ 07-19-2011: Message edited by: Neil - Ex P. & O. S. N. Company. ]


Posts: 2355 | From: Dunstable, Bedfordshire. 30 miles north of London | Registered: May 2005  |  IP: Logged
rd77
First Class Passenger
Member # 2117

posted 07-19-2011 08:08 AM      Profile for rd77   Email rd77   Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by Neil - Ex P. & O. S. N. Company.:
Some attention was required to her air conditioning, laundry and her galley !

That I would say is not the description for a rusting hulk !
.

[ 07-19-2011: Message edited by: Neil - Ex P. & O. S. N. Company. ]


Neil,

I can't say anything about the engines, but I have read from several sources that the accomodations had suffered rather a lot from the humid climate in Singapore/Malaysia, but I suppose that that can be fixed...


Posts: 1037 | From: The Hague, Netherlands | Registered: Jun 2001  |  IP: Logged
ahrpd
First Class Passenger
Member # 6229

posted 07-19-2011 11:47 AM      Profile for ahrpd     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by rd77:
I have read from several sources that the accomodations had suffered rather a lot from the humid climate in Singapore/Malaysia, but I suppose that that can be fixed...

Are we gertting the two sisters confused? FLAMENCO I (ex SPIRIT OF LONDON) has been laid up in Malaysia for a couple of years. RIO (ex SOUTHWARD) has not been to the Far East since she was SEAWING.

Tony


Posts: 948 | From: gibraltar | Registered: Feb 2006  |  IP: Logged
SSTRAVELER
First Class Passenger
Member # 15170

posted 07-19-2011 02:49 PM      Profile for SSTRAVELER     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by Neil - Ex P. & O. S. N. Company.:
If the information provided on the ship, when it was advertised for sale, mentioned that the engines were in working order than the buyer has every reason to take action against the seller......

That I would say is not the description for a rusting hulk !
[ 07-19-2011: Message edited by: Neil - Ex P. & O. S. N. Company. ]



As I said if the seller made representations on the condition, it is still the buyer's responsibility to check it out and survey it even if they were buying it for scrap. In the end it will end up in the courts to sort out if there were misrepresentations and if the seller is libel or not.

As for rusting hulk ,,,, take a look at the pictures or do the inspection. The pictures speak loudly to her horrid conditions and the people I know who kicked her tires were not even that kind to call her a rusting hulk .... their description can not be written down here but you can use your imagination!


Posts: 757 | From: New York | Registered: May 2008  |  IP: Logged
rd77
First Class Passenger
Member # 2117

posted 07-19-2011 05:02 PM      Profile for rd77   Email rd77   Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by ahrpd:

Are we gertting the two sisters confused? FLAMENCO I (ex SPIRIT OF LONDON) has been laid up in Malaysia for a couple of years. RIO (ex SOUTHWARD) has not been to the Far East since she was SEAWING.

Tony


No, I'm talking about FLAMENCO I and so is SSTRAVELLER, I believe...


Posts: 1037 | From: The Hague, Netherlands | Registered: Jun 2001  |  IP: Logged
Neil - Ex P & O & PRINCESS CRUISES
First Class Passenger
Member # 5641

posted 07-19-2011 06:07 PM      Profile for Neil - Ex P & O & PRINCESS CRUISES   Author's Homepage   Email Neil - Ex P & O & PRINCESS CRUISES   Send New Private Message      Edit/Delete Post  Reply With Quote 
ss Traveler

We have pictures of her on the ' cruisingtalk ' website, which I manage, and it would not take much work to renovate her passenger accommodation !


Posts: 2355 | From: Dunstable, Bedfordshire. 30 miles north of London | Registered: May 2005  |  IP: Logged
sslewis
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posted 07-29-2011 12:51 PM      Profile for sslewis   Author's Homepage   Email sslewis   Send New Private Message      Edit/Delete Post  Reply With Quote 
Neil,
thank you for your observations.
I was a bit astonished by the news that the former Spirit of London/Flamenco was finished. Fiat diesels are strong and if I recall she had a complete refurb since I saw her in Barcelona, particularly in the restaurant which is now art deco.
Now I understand she suffered a fire as Majestic, but she was going strong in Barcelona and hope she escape the scrappers and bad tongues....

Posts: 2513 | From: Shipspotting Solent shores when weather allows.... | Registered: Feb 2003  |  IP: Logged
Neil - Ex P & O & PRINCESS CRUISES
First Class Passenger
Member # 5641

posted 07-29-2011 06:30 PM      Profile for Neil - Ex P & O & PRINCESS CRUISES   Author's Homepage   Email Neil - Ex P & O & PRINCESS CRUISES   Send New Private Message      Edit/Delete Post  Reply With Quote 
Hi

About the last work she did was as a hotel ship in the South Pacific area when she was chartered to be used in New Calodonia.

Since then she returned under her own steam to Singapore where she was subject to an Admiralty Court sale and bought by a company registered in Singapore.

As far as is known she never made a passenger voyage for this company.
.


Posts: 2355 | From: Dunstable, Bedfordshire. 30 miles north of London | Registered: May 2005  |  IP: Logged
SSTRAVELER
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posted 07-30-2011 09:01 AM      Profile for SSTRAVELER     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by sslewis:
Fiat diesels are strong and if I recall she had a complete refurb since I saw her in Barcelona, particularly in the restaurant which is now art deco.
Now I understand she suffered a fire as Majestic, but she was going strong in Barcelona and hope she escape the scrappers and bad tongues....

The cosmetics have little to do with it. Of course you can always throw down some new carpets, hang wall coverings, new furniture, etc. but the critical decisions have to do with the economics and the structure.

Structurally the first thing to go on most of the ships is the tanks, a/c, etc. The stuff you can not see in the pictures. (Remember the first Oriana? She looked great above decks but her tank tops were shot.)

The motors are usually the last thing to go but even when they are the finest made it depends on the maintenance. You can have a Rolls Royce but if you do not put oil and water in and change the oil occasionally the motor will still seize up like the least expensive Yugo or Trabant.

Its very doubtful a 1990s fire is having anything to do with the decision to scrap the ex Spirit of London, etc. The classification societies would long ago have made the owners fix any serious issues from the fire when she was the Majestic.

And even if you did refurb the ship she would be a discount operation in a smaller market. She has no balconies. She has tiny cabins by modern standards. She carries a relatively small passenger load. Simply put she can not compete against the modern fleets. This is why Louis off loaded her sister ship.

While it is somewhat surprising to see this one at the end of her economic life it so no big surprise that the 1970s generation cruise ships will soon be hitting the beaches at Alang. The Pacific looks to be in similar trouble and all that is keeping the rest of this generation going is force of habit and better maintenance, owner/operators. But the economics are equally running against the other members of this generation. So the only real question is which one will be first and how quickly will the others follow.


Posts: 757 | From: New York | Registered: May 2008  |  IP: Logged
Neil - Ex P & O & PRINCESS CRUISES
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posted 07-30-2011 01:13 PM      Profile for Neil - Ex P & O & PRINCESS CRUISES   Author's Homepage   Email Neil - Ex P & O & PRINCESS CRUISES   Send New Private Message      Edit/Delete Post  Reply With Quote 
[QUOTE]Originally posted by SSTRAVELER:
[QB]

Structurally the first thing to go on most of the ships is the tanks, a/c, etc. The stuff you can not see in the pictures. (Remember the first Oriana? She looked great above decks but her tank tops were shot.)

Hi

Not sure where you got this from about the tank tops on ss Oriana but I was on her for about the last ten years she was in service and it was the price of oil which sealed her fate.

The last brochure issued for her went through to September 1986 but she was withdrawn at the end of March 1986 .

She burned about 450 tons of fuel a day !
.


Posts: 2355 | From: Dunstable, Bedfordshire. 30 miles north of London | Registered: May 2005  |  IP: Logged
rd77
First Class Passenger
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posted 08-01-2011 02:54 AM      Profile for rd77   Email rd77   Send New Private Message      Edit/Delete Post  Reply With Quote 
The RIO is up for auction:

From Paul Mason's Market report of 31st July:

"RIO MLT 1971 2388 (CRUISE) FOR SALE AT AUCTION 'AS IS' ASHDOD - THE FORMER 'SEAWING'"

http://www.freewebs.com/paulmasonthamesshipping/marketreport31stjuly.htm


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