NEW YORK -- In a widely anticipated move, American Classic Voyages,
the largest U.S.-flag cruise operator, filed for Chapter 11
reorganization Oct. 19 at the U.S. bankruptcy court in Wilmington,
Del.
AMCV was a victim to the Sept. 11 terrorist attacks, according
to Phil Calian, the company's chief executive officer. "[The
attacks] dealt a devastating blow to our business that has made it
impossible to continue our full operations," he said.
AMCV will cease operations for its Hawaii-based ships -- the
1,214-passenger Patriot and 798-passenger Independence -- on Oct.
20 at the completion of their current sailings, he said.
Four of the company's five steamboats, including the American
Queen, the Mississippi Queen, the Columbia Queen and the Cape May
Light, also will cease operations at the end of each ship's current
sailings through Oct. 22.
The Delta Queen, which is a National Historic Landmark, will
continue its published schedule, according to Calian.
Calian said AMCV will work with Northrup Gruman Corp. and the
U.S. Maritime Administration to continue construction of AMCV's two
1,900-passenger "Project America" ships, scheduled for completion
in 2004 and 2005.
Meanwhile, Carnival Corp. is in discussions with AMCV's
management to "determine the future status of Patriot on which a
Carnival subsidiary holds an approximate $80 million first
preferred ship mortgage," according to a statement.
AMCV acquired the Patriot from Carnival's Holland America Line
brand in Oct. 2000 for approximately $114.5 million, according to
the statement. Carnival officials "have not determined" how the
ship will be used if it returns to the company.
Calian said AMCV had reported increasing per diems and occupancy
on its Hawaii ships, profitable performance in its Delta Queen
fleet and had recently reached an agreement with Northrup Gruman,
parent company of Mississippi-based Ingalls Shipbuilding, to
continue work on the two 1,900-passenger ships under construction
at the yard.
The company has established a customer information hotline at
(800) 856-9904 and additional information is available on the
company's Web site at www.amcv.com.