Norwegian Cruise Line Holdings (NCLH), which operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands, has raised concerns that there is “substantial doubt” about its ability to continue should it not secure additional financing or other measures.
In a statement the company said: “The company does not have sufficient liquidity to meet its obligations over the next twelve months, assuming no additional financing or other proactive measures.
“The company has taken, and anticipates taking, significant additional actions to increase liquidity, extend debt maturities, delay obligations and reduce operating costs.
“In addition, the company has been evaluating a number of financing transactions that, if successful, would provide net proceeds which are anticipated to be sufficient to provide the liquidity necessary to satisfy its obligations over the next twelve months, including the maintenance of minimum levels of liquidity required by certain of our debt agreements.
“There can be no assurance, however, that the company will be able to complete any such financing transaction, raise sufficient additional capital, finalise additional amortisation deferrals or that revenues will increase rapidly enough to offset operating losses that will provide with sufficient liquidity to satisfy its obligations over the next twelve months, or maintain minimum levels of liquidity as required by certain of our debt agreements.
“Booking trends indicate demand for cruise vacations in the medium and longer term with the booked position for 2021 slightly lower compared to same time last year at pricing that is down mid-single digits versus prior year,” the statement continued.
“During the temporary suspension of our cruise voyages, we expect to be required to pay cash refunds of advanced ticket sales with respect to a portion of our cancelled cruises.”
