HOLLYWOOD, Fla. -- Commodore Holdings Ltd., parent company of
Commodore Cruise Line and Crown Cruise Line, suspended cruise
operations and filed for Chapter 11 bankruptcy protection
Wednesday.
Commodore canceled cruises on the Enchanted Capri beginning Dec.
31, and on the Enchanted Isle and Crown Dynasty beginning Dec. 30.
The Enchanted Capri and Enchanted Isle offered two-, five- and
seven-day cruises from New Orleans. The Crown Dynasty sailed from
Aruba.
In a statement issued by the company, Commodore said all current
passengers on sailings would be returned to their ports of
embarkation.
Fred Mayer, chief executive officer of Commodore, said the firm
deeply regrets having to suspend operations, but "had no other
choice."
A Commodore phone message alerts callers that "due to
circumstances beyond our control... all future sailings have been
cancelled as of Dec. 27." The message goes on to advise ticket
holders and agents to fax questions or concerns to
954-967-2148.
About 30,000 persons hold advance reservations on the company's
ships, Mayer said. He said passengers booked on the two Commodore
ships based in New Orleans would be able to obtain reimbursements
from a $15 million bond placed with the Federal Maritime
Commission.
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The bond does not cover passengers booked on the Crown Dynasty's
sailings out of Aruba. It does, however, include this summer's
Crown Dynasty sailings to Bermuda from U.S. ports are covered.
Mayer said passengers who booked cruises from Aurba through
credit cards should advise the card issuers to halt payments.
He said his company intends to file a reorganization plan within
120 days with the U.S. Bankruptcy Court in Fort Lauderdale.
Commodore said its financial troubles began when changes in
California gaming laws slowed bookings for its one-day casino
cruises out of San Diego. Commodore shut down that itinerary in
June.
The 34-year-old company had 1999 earnings of $4.9 million on
sales of $61.5 million. The Nasdaq halted trading of CCLN shares on
Dec. 27.
Commodore becomes the second cruise firm to file for Chapter 11
in four months, following the bankruptcy of Premier Cruise Line in
September.