Norwegian Cruise Line Holdings Ltd. (NCLH), the world’s third largest cruise shipping group, has raised “substantial doubt” about its ability to continue as a growing concern as it does not have enough liquidity to meet its obligations over the next 12 months, it said in a statement.
This was published on the same day, 5 May, as the company unveiled a plan to raise a total of $2.00 billion i debt and equity.
The company said the aftermath of COVID-19 outbreak and, in particular, “the suspension of cruise voyages and decline in advanced bookings, as well as debt maturities and other obligations over the next year, and the fact that management’s plan to obtain additional financing has not yet been completed, have raised substantial doubt about the Company’s ability to continue as a going concern, as the Company does not have sufficient liquidity to meet its obligations over the next twelve months, assuming no additional financing or other proactive measures,” NCLH said.
“We anticipate needing additional financing, and such financing may not be available on favorable terms, or at all, and may be dilutive to existing shareholders”, we believe the net proceeds received in such financing along with our ability to defer certain debt payments will be sufficient to provide the necessary liquidity meet our obligations during the next 12 months, including the maintenance of minimum levels of liquidity required by certain of our debt agreements. There can be no assurance, however, that we will be able to complete such financing, raise sufficient additional capital or that other factors will improve enough to offset operating losses,” the company stated.
