Pullmantur Cruceros, the Spanish cruise operator , has decided to file for reorganisation of its business under the terms of Spanish insolvency legislation in the aftermath of the COVID-19 pandemic, minority shareholder Royal Caribbean Cruises Ltd. (RCCL) said in a statement.
Pullmantur's board of directors determined that the unprecedented impact of the COVID-19 pandemic made the action necessary and its 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 reorganisation," the board stated.
The company canceled sailings through November 15, 2020. Royal Caribbean Group said that guests already booked to sail on Pullmantur will be offered the option to sail on other RCCL brands including Royal Caribbean International and Celebrity Cruises. Pullmantur noted that details of the offer will be shared with guests 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.
The company operates three ships - Monarch, Sovereign and Horizon, all of which are on charter from the RCCL group.
Meanwhile RCCL that has a 49% stake in the company noted that all of its assets related to the Pullmantur Cruceros joint venture had been included in the non-cash asset impairment charge.
