The U.S. Maritime Administration, or Marad, is selling the American Queen and the Empress of the North, former Majestic America Line ships.
Marad has hired investment banking firm AMA Capital Partners to assist with the sales process.
The Empress of the North and the American Queen were surrendered to Marad by Ambassadors International in August 2008 and November 2008, respectively.
When the ships were turned over to Marad, the American Queen and the Empress carried approximately $28.3 million and $37.3 million in debt, respectively, according to Ambassadors' financial report for full-year 2008.
One source valued the American Queen at $25-$30 million.
Prior to handing the ships over to Marad, Ambassadors owned them under the now-defunct Majestic America Line, a seven-ship operation. The other ships were the Delta Queen, Mississippi Queen, Columbia Queen, Queen of the West and Contessa, all of which are for sale.
All of the ships are in drydock except for the Delta Queen, which is under lease as a floating hotel in Chattanooga, Tenn.
A quick history lesson: American Queen
The 436-pasenger American Queen was launched in June 1995 by then-owner the Delta Queen Steamboat Co., which spent $65 million to build the ship. Constructed by the MacDermott Shipyard in Amelia, La., the 3,707-ton American Queen is the largest river sternwheeler ever built.
The six-deck ship was fitted with a steam engine taken from a retired, 1930-built dredger.
In its 13-year career, the American Queen has navigated its share of obstacles. While on its maiden voyage to Pittsburgh in June 1995, it struck a sandbar in the Ohio River near Troy, Ind., and remained stuck for several days before finally getting towed.
In October 2001, Delta Queen's parent company, American Classic Voyages, declared bankruptcy. The American Queen was laid up until January 2003, when the Delta Queen Steamboat Co. was purchased by new owners, Delaware North.
This reprieve lasted until September 2005, when Hurricane Katrina struck New Orleans, resulting in the cancellation of all sailings so the vessel could house oil industry workers in New Orleans and Beaumont, Texas.
The American Queen remained laid up until the Delta Queen Steamboat Co. was sold to Ambassadors and merged with the American West Steamboat Co. to form Majestic America Line. After a refit, the American Queen resumed sailing in the spring of 2007 until November 2008, when Marad possessed it.
A quick history lesson: Empress of the North
American West Steamboat Co. introduced the 235-passenger Empress of the North, in Alaska on Aug. 10, 2003. The ship is a reproduction of a 1800s-era, paddlewheel riverboat.
The Empress' inaugural 11-day Inside Passage cruise from Seattle to Juneau marked the first overnight sternwheeler cruise in Alaska in more than a century.
In October 2003, the Empress joined American West’s other ship, the Queen of the West, on Columbia and Snake river itineraries out of Portland, Ore. The ship alternated between Alaska and the Pacific Northwest cruises during its sailing days.
In 2006, Ambassadors acquired American West.
On May 14, 2007, the Empress ran aground en route to Glacier Bay from Juneau. There were no injuries, but the vessel incurred damage to the hull and took on water, causing it to list. After repairs, the vessel returned to service that summer.