A Statement from Royal Olympic Cruise Lines, Inc.
(parent company of Royal Olympia Cruises)
Royal Olympic Cruise Lines, Inc., has announced that two of its subsidiary companies, the shipowning companies of the Olympia Explorer and Olympia Voyager, have filed for reorganization under Chapter 11 of the United States bankruptcy code.
The company had been in discussion with the lenders to these subsidiaries regarding a potential restructuring of $250 million in loans incurred to finance the acquisition of the two vessels. Discussions did not produce an agreement and the lenders delivered a notice of acceleration of the loans. These loans are secured by mortgages on the two vessels. As a result, the owners filed for Chapter 11.
Subject to further discussions with lenders now in progress and further action by the District Court of Honolulu, both vessels are restricted to calls at US Ports. It was therefore necessary to cancel the December 22, 2003 and January 5, 2004 sailings of the Olympia Explorer, and the January 2, 2004 sailing of the Olympia Voyager. The Olympia Voyager was held at St. Thomas, V.I., and will return to Port Everglades with passengers on January 2nd. The Olympia Explorer is being held in Los Angeles pending further developments.
Neither Royal Olympic Cruise Lines, nor any other subsidiary has filed for Chapter 11 protection. The company intends to continue discussions with the lenders.
Aside from the above-mentioned events, there has been no adverse impact on the ships, and media reports of actions against or in connection with Olympic Voyager are in error.