• Home

Home » North America » Windstar Cruises Being Sold

Windstar Cruises Being Sold

Windstar Cruises is in the process of being sold. This was three weeks after Ambassadors Int’l, the Seattle Based parent company of the cruise line filed for bankruptcy. The three ship line is being sold for close to $ 40 million.

The Cruise line is being sold to a private equity firm known as Whippoorwill Associates Inc., which is based in White Plains, New York. It is expected that the sale will be completed by May 23.

The sale does have some impediments for completion. Bloomberg reported recently that creditors of Windstar had the argument in bankruptcy court that the sale should be completed only after a delay of at least 30 days, so that the buyer can be investigated closely. The buyer is the largest shareholder of the cruises as well. However, in a ruling made on 19th April, a judge was of the same opinion as Ambassadors, that was to the effect that it was crucial that the cruise line be sold as fast as possible, as the circumstances were “exigent”.

This basically implies that Windstar Cruises might run out of cash to run it if not sold as soon as possible. Hans Birkholz, CEO, Ambassador and Windstar revealed while questioning that the company could be totally out of cash by mid May.

Also, there will be an auction held on May 16th which will give a chance for other entities to buy the sailing assets of the company by outbidding Whippoorwill. The next hearing will be held in May 18 and the sale will be considered.

There is no cause for worry for passengers or travel agents. A letter was sent to booked passengers and travel agents, where BIrkholz assured them that the legal process should have no impact on their travel plans, and that all cruises are sailing as scheduled, the staffing levels will also be maintained online, and all remuneration and commissions to travel partners and employees will be paid with no interruption. Normal Windstar cancellation terms and conditions will apply at this time.

Norwegian Jade
Saga Pearl II becomes Spirit of Adventure

Leave a Reply

CommentLuv badge
Copyright © 2009 · Cruise 360 · All Rights Reserved ·