Tradewind Voyages suspends sales on sanction woes

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Written by Kari Reinikainen Kari Reinikainen

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Published: 16 June 2022 16 June 2022

Tradewind Voyages, the UK based operator of a tall ship called Golden Horizon has decided to suspend sales as sanctions against Russian entities have impacted its lender in Germany, media reports say.

“The tall ship operator and its owning group DIV Group are taking financial advice as they have been impacted by sanctions placed on German-based bank VTB. While the company has been dealing with VTB bank, Germany, its headquarters are based in Russia,” Travel Weekly reports.

DIV group is based in Croatia and it owns the Brodosplit shipyard that built the vessel that was left in its hands after Star Clippers that had ordered did not take delivery of the vessel. Tradewind Voyages are the ship’s operator, while DIV group remains the owner.

The ship's exterior was designed to resemble France II, a five masted tall ship that was built before the First World War.

Havila Kystruten goes to court to take ownership of vessel

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Written by Kari Reinikainen Kari Reinikainen

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Published: 16 June 2022 16 June 2022

Havila Kystruten, which is in the process of introducing newbuildings on the Norwegian coastal express service, said it has taken court action to become the owner of Havila Capella and secure its interest in the ships it has on order at the Tersan shipyard in Turkey - or Turkiye, as the leadership prefers the country to be called.

Havila Capella has been at quay in Bergen since 12 April, after the insurance companies terminated the ship's insurance due to sanctions against Russian interests. “The long-term financing with GTLK Asia of the ship is a financial leasing where the loan documentation gives Havila Kystruten all rights and all responsibility for the operation of the ship as if the ship were wholly owned by Havila Kystruten. The company has a purchase right from the leasing company two years after delivery and a purchase obligation at the end of the contract with the Ministry of Transport and Communications. On 8 April, GTLK was added to the EU's list of sanctioned companies because of Russia's war against Ukraine,” Havila Kystruten said in a statement.

Insurance withdrawn

On 26 April, the company received a dispensation from the Ministry of Foreign Affairs to operate the ship for six months. In the extension of the dispensation, the ministry did not take a position on the dispensation that applies to the insurance of the ship. This had to be applied for specifically by the insurance provider, and that application was rejected on 9 May. “During the period, Havila Kystruten has worked with short-term solutions to get the ship back into operation, at the same time as it has worked with solutions for a change of ownership of the ship,”the company said.

This week, Havila Kystruten filed a case at The High Court of Justice, Business and Property Courts of England and Wales, Commercial Court (QBD) in London to force a change of ownership of the ship.

“It is important for us to take over the ownership of Havila Capella. We have tried to find a solution with GTLK Asia, but the only solution they have put forward is to pay the amount due. It would be illegal for us to pay the amount due to a sanctioned company. We want to settle by paying the amount we owe GLTK Asia to a blocked account. The amount will be paid to GTLK Asia when the sanctions are lifted”, says CEO Bent Martini of Havila Kystruten.

“We have also not met very much willingness from our financing partner to find an amicable solution, and fear that they will sell our debt to a third party who will further complicate the situation. Therefore, we now choose to take legal action to demand a change of ownership”.

Havila Kystruten has been in continuous dialogue with several ministries in Norway to find a temporary solution to be able to operate the ship on the route along the coast to which the company is obliged in accordance with a contract with the Ministry of Transport. So far no solution has been found.

If the Havila Coastal Route succeeds in legal action, Havila Capella will be put back into operation.

Ownership change could allow return to service

“A breakthrough for the change of ownership will solve the challenges we face meaning that Havila Capella receives full insurance and can return to operate along the Norwegian coast. It will mean a lot to us financially to get the ship on schedule again, but not least it also means a lot to the coastal communities and Norwegian tourism”, says Martini.

GTLK Asia is the formal owner of the ship after the financing solution chosen in 2019, almost three years before the tragic Russian invasion of Ukraine. This was a so-called "sale and lease back" financing, which meant that Havila Capella was transferred to the leasing company, at the same time as they leased the ship back to the Havila Coastal Route.

“In the agreement, we are obligated purchase the ship in 10 years, at the same time as we have the right to buy it back during the contract period. At the same time, this type of agreement presupposes that Havila Kystruten has all other responsibilities on the ship, so that the real ownership and ownership relationship lies with our shipping company. The financial solution also means that Havila Capella is capitalized as owned by Havila Kystruten and also tax resident in Norway”, Martini explains.

The company is also working to refinance the entire fleet.

“Redemption of our debt to GTLK is dependent on our success with the ongoing refinancing of the vessels, both those delivered from the yard and the vessels under construction”.

“The legal steps taken include requirements to secure the company's interests in ships under construction at the Tersan shipyard. We have today, 16 June 2022, received a ruling from English judiciary which states that no activity or transaction can be carried out related to the two ships under construction without the approval of the Havila Coastal Route”.

A clarification from English law regarding Havila Capella is expected within a reasonable time.

Desires forced use and arrest

On 16 June, a petition was submitted to Hordaland District Court for temporary arrest and forced use of Havila Capella.

“A request for temporary arrest in and right of use of Havila Capella makes it possible to insure the ship in the name of Havila Kystruten pending that we can take over ownership”, Martini concludes.

MSC unit may launch bid to acquire Global Ports Holding

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Written by Kari Reinikainen Kari Reinikainen

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Published: 15 June 2022 15 June 2022

A company in the MSC Mediterranean Shipping Company Holdings S.A. group may launch a cash offer to acquire all shares in Global Ports Holding (GPH), the London listed and Istanbul based cruise port operator.

“The Company notes the recent media speculation regarding the Company. In accordance with Rule 2.4 of the Code, the Company confirms that, following expressions of interest made to Global Yatırım Holding A.Ş (Global Investments  Holding, the Company’s majority shareholder), the Company received an approach regarding a potential cash offer for all of the shares in the Company by SAS Shipping Agencies Services Sarl (“SAS”), a wholly-owned subsidiary of MSC Mediterranean Shipping Company Holdings S.A (“MSC”), and discussions are ongoing,” GPH said in a statement.  

The deliberations are at a preliminary stage and no decisions with respect to an offer have been made. “There can be no certainty that an offer might ultimately be made for the Company nor as to the terms on which any offer might be made,” GPH said.

SAS would have to announce whether or not it will make an offer by 5pm London time on 13 July. However, the deadline could be extended in some cases, GPH continued.

GPH operates 26 cruise ports in 14 countries. Shares in the company surged by almost 20% to 109.00 p on the news of a possible bid. However, they have lost 13% of their value in the past 12 months as the cruise industry has faced challenging times with the Covid-19 pandemic. In the past five years, they have plummeted by 83% on the pandemic and poor profitability before it.

MSC Cruises that is owned by MSC Mediterranean Shipping Company Holdings is the world's largest privately owned cruise shipping company.

Photo: Cruise ports in the Canary Islands are operated by GPH

Costa Luminosa to transfer.Carnival fleet and start service in November 2022

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Written by Teijo Niemelä Teijo Niemelä

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Published: 15 June 2022 15 June 2022

Carnival Cruise Line announced yesterday that Costa Luminosa will join the Carnival fleet in September and will start guest operations as Carnival Luminosa in November 2022 from Brisbane, Australia. The acquisition of Luminosa is an update to the previously announced plans for Carnival to take Costa Magica, which will now remain at Costa Cruises.

After this delivery, Carnival Luminosa will operate seasonally from October through April from Brisbane, then reposition to Seattle, where it will sail Alaska itineraries from May through September, before returning to Brisbane.

Luminosa is a sister ship to the four other popular Spirit class ships that already sail for Carnival. Entering service in 2009, the ship accommodates up to 2,826 guests and 1,050 crew at 92,720 gross tons.

“With our full fleet back to guest operations and the pent-up demand for Carnival we are seeing every week aboard our ships, the chance to expand with Luminosa and then the arrival of Carnival Celebration in November provides our guests with more choices and new ways to enjoy a Carnival vacation,” said Christine Duffy, president of Carnival Cruise Line. “Our Spirit class ships are very popular with our guests and Luminosa will be a great addition given the large number of balcony cabins which make her an ideal ship for this deployment. And equally important, this will allow Carnival to finally start our highly anticipated itineraries from Brisbane, so we’ll have two ships operating in Australia for the high season Down Under.”

Given the short timeline to get Carnival Luminosa ready for service, the ship will go through some modest updates to change over from Costa to Carnival over the next few months ahead of the November service start-up. The ship will not initially have all of the Funship 2.0 branded spaces that are seen across the Carnival fleet. The entire vessel will be staffed by the Carnival Cruise Line crew, renowned for their outstanding hospitality and fun. Cruises out of Brisbane will be announced shortly, and Carnival will sail a variety of itineraries that will initially include visits to Australian favorites such as the Great Barrier Reef and Airlie Beach, and, as destinations open over time, ports of call such as Noumea and Lifou Isle in New Caledonia, Port Vila and Mystery Island in Vanuatu, Papua New Guinea and Fiji.

Duffy said, “The opportunity to deliver these bucket list itineraries will be exciting for our guests and we are thrilled to see the growing number of guests from the U.S. sailing on Carnival in Australia.”