Royal Caribbean’s JV Pullmantur files for reorganisation

 Cruises Investment Holding and Royal Caribbean Group (RCL) have filed for the reorganisation of their Pullmantur Cruceros joint venture under the terms of Spanish insolvency laws.

Cruises Investment Holding owns 51 per cent of the Spanish cruise line, while RCL owns the remaining 49 per cent.

Pullmantur operates three older cruise ships — the 2,733-passenger Sovereign, the 1828-passenger Horizon and the 2,752-passenger Monarch.

As informed, Pullmantur’s board of directors determined that the unprecedented impact of the COVID-19 pandemic made the action necessary. Pullmantur management notified employees of the decision after filings were made with Spanish authorities.

“Despite the great progress the company made to achieve a turnaround in 2019 and its huge engagement and best efforts of its dedicated employees, the headwinds caused by the pandemic are too strong for Pullmantur to overcome without a reorganization,” the board stated.

Earlier this month, Pullmantur canceled sailings through 15 November 2020. Royal Caribbean Group said that guests already booked to sail on Pullmantur will be offered the option to sail on other RCL brands including Royal Caribbean International and Celebrity Cruises. Pullmantur noted that details of the offer will be announced in the near future.

“Crew are staffed at minimum maintenance levels on Pullmantur’s three ships and the company will take care of their safe return home,” RCL said in a statement.

RCL noted that all of its assets related to the Pullmantur Cruceros joint venture had been included in the non-cash asset impairment charges reported in their first quarter of 2020 results.

For the first quarter of this year, RCL reported US GAAP net loss of $1.4 billion, compared to US GAAP net income of $249.7 million posted in the corresponding period last year. Due to the COVID-19 pandemic, the company suspended its global cruise operation on 13 March, which resulted in the cancellation of 130 sailings during the first quarter and a consequent reduction in capacity.