The U.S. Bankruptcy Court for the District of Delaware granted an order officially approving the sale of substantially all of Ambassadors International’s assets, including Windstar Cruises, its principal operating unit.
As reported earlier this week, Denver billionaire Philip Anschutz is the buyer. TAC Cruise, a subsidiary of the Anschutz Corp., submitted a surprise bid of $39 million in cash during a bankruptcy auction. The sale is expected to close next week.
Ambassadors said that all three Windstar yachts are sailing as scheduled.
Ambassadors on April 1 filed for Chapter 11 bankruptcy protection and had entered into an agreement to sell all of its assets to Whippoorwill Associates, a private investment firm in White Plains, N.Y., and the company’s biggest creditor.
At the time, Whippoorwill had agreed to provide $10 million in new financing under a debtor-in-possession credit facility, which was to be used to help support Ambassadors' and Windstar's operations during the sale process.
There was no immediate reaction from Whippoorwill on the winning Anschutz bid.
Under the sale agreement to TAC, Windstar will operate as a wholly owned subsidiary of Xanterra Holding Corp. of Greenwood Village, Colo. Xanterra is also the holding company for Xanterra Parks & Resorts, an Anschutz company that provides lodging and other tourism services at several U.S. National Parks.
"Windstar emerged as a tremendous long-term opportunity due to the line’s exceptional product, loyal following and high level of guest satisfaction in the luxury travel market," said Andrew Todd, CEO of Xanterra Holding Corp.
"Xanterra intends to maintain Windstar's business and operations and to invest in Windstar's growth following the close of the sale.”
Hans Birkholz, Windstar's CEO, said the company is pleased with the outcome of the sale process.
"Windstar will be well-positioned for long-term profitability and success under new ownership, and we will continue to provide exceptional service and extraordinary luxury travel experiences for our guests,” he said.
It is expected that Ambassadors stock and convertible notes will likely have little, if any, value following Ambassadors' Chapter 11 proceeding, Ambassadors said in a statement.
There was no indication that any Windstar management changes are planned.