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The fate of three former Royal Caribbean ships is unclear after the Spanish cruise line operating them filed for bankruptcy reorganization because of the coronavirus pandemic.

Pullmantur Cruises, which is 49% owned by Royal Caribbean and 51% owned by Cruises Investment Holding, filed to reorganize, claiming insolvency under Spanish law as the line is unable to pay its debts. 

It's been a lingering question whether coronavirus would bring down cruise lines – given the industry came to a halt after website, Royal Caribbean Group said that all guests who had been booked on a Pullmantur itinerary have the option to reschedule on other Royal Caribbean cruise lines, including Royal Caribbean International and Celebrity Cruises.

As far as how reorganization will look, plans have not yet been made clear.

“We’re going through the process right now,” Fishman said.

Typically, reorganization includes changing the capital structure, altering debt payments and selling assets, among other steps, Jaime Katz, senior equity analyst for Morningstar told USA TODAY.

Thomas Hayes, chairman and managing member of Great Hill Capital, LLC, a New York-based long and short term equity manager, speculated that ships could be sold – or scrapped.

"There were rumors that all three Pullmantur ships will be going to scrap as they were built in 1991, 1990 and 1988," Hayes said. "There is nothing confirmed at this point."

Cruise Law News, an industry blog, reported that employees had begun dismantling the interiors of the Monarch and the Sovereign, which are currently docked in Naples, Italy, according to CruiseMapper.

Katz said that since the announcement says passengers booked on cruises have the option to sail on other Royal Caribbean lines, it may indicate that Pullmantur might rebrand any ships they don’t sell – if selling assets becomes part of the reorganization plan.

At the time of the announcement, Pullmantur ships were staffed with minimal crew on board for maintenance, and the company will ensure their safe return 真人百家家乐官网网站home, according to the announcement.

"It may be the case that marginal cruise providers will be the hardest hit – as we slowly get back to normal," Hayes said. "It's too early to tell if (reorganization) is a trend or a 'one off.'"

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