Companies with this kind of dire outlook are sometimes able to turn things around and survive, although it often takes a trip through bankruptcy to shed debt and other liabilities in order to do so.
“The cruise industry has been very resilient over a long period of time,” said Scott Dahnke, co-CEO of L Catterton, a consumer-focused private equity firm. “The industry has overcome numerous challenges in the past, and we expect that the industry will rebound and prosper with even further enhancements to their already rigorous health and safety protocols in place in the future.”
Norwegian also announced plans to raise nearly $1.35 billion more in a private placement of other notes due in 2024, and up to $400 million more through the sale of additional shares of stock. Altogether that should provide the company with $3 billion in additional cash reserves, according to a company release.
Despite its name, Norwegian is a Miami-based company that operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands. Those lines have a combined fleet of 28 ships with nearly 60,000 berths among them. The company said Tuesday that it still intends to go forward with plans to add nine ships to its fleet through 2027.
The company said it is also making significant cost cuts. Last week it announced the furlough of 20% of its on-shore staff, and the remaining employees will have their hours and pay reduced 20%. As of year-end 2019, the company had 4,000 on-shore employees and 32,000 working aboard its ships.
Source : CNN