Haimark Line has canceled the first in a highly anticipated series of cruises to Cuba because it is still negotiating the availability of its chartered ship with its owner.
The Feb. 29 cruise would have been the first in decades to leave Miami and sail to Cuba.
Since last summer Haimark had been planning to offer 10-day cruises on the 200-passenger coastal vessel the Saint Laurent. But that ship is the subject of an insurance dispute that landed Haimark in federal bankruptcy court in October.
Haimark has been in ongoing talks with the owner of the ship, Clipper Cruises, to either use it for the Cuba itineraries or gain access to another vessel from Clipper for the cruises.
In a Feb. 10 email, Haimark President Hans Rood said the talks have yet to conclude.
"This has to come to a resolution [soon]," he said.
Some of Haimark Line's big customers agree.
Tour operator Road Scholar had sub-chartered the Saint Laurent for the next two Cuba cruises, departing on March 9 and
18. Now it wants to be let out of its contract with Haimark.
In a motion in the U.S. Bankruptcy Court in Colorado, where Haimark is headquartered, Road Scholar argued that it contracted for space on a particular vessel, the Saint Laurent.
"That is what Road Scholar and its clients have paid for," the filing says.
"Road Scholar does not have the luxury of time to allow [Haimark] to negotiate a new agreement with Clipper Cruises while navigating the bankruptcy process," the motion continued. "Road Scholar has immediate pending obligations to its customers that it must meet at the risk of suffering grave financial and operating consequences."
In response, attorneys for Haimark pleaded for more time, citing the company's Jan. 25 announcement that a Los Angeles private equity firm had acquired Haimark Line, along with Haimark Ltd., which operates river cruises in Asia and on the Amazon.
"Haimark Line is in the process of finalizing the sale of its stock, along with the stock in related businesses that all operate under a shared services agreement with Haimark Ltd.," the objection said.
The two cruises subchartered by Road Scholar this spring plus two more next fall are worth $3 million in revenue to Haimark, according to a contract appended to Road Scholar's motion.
Haimark said losing that revenue would harm its effort to reorganize its finances and pay creditors.
Road Scholar isn't the only customer trying to get out of its contract with Haimark Line. On Feb. 4, Rivages du Monde, a travel operator based in Paris, also asked for court approval to break a subcharter agreement.
It had placed a deposit of $764,334 for eight 2016 departure dates beginning
June 11 and said its agreement expressly named the Saint Laurent as the vessel that would be used.
In its motion, Rivages said it has already started to market the cruises, but feels there is no certainty they can be delivered.
"It is not simply the economic loss that is at risk but also reputational risk for Rivages and loss of future customers if it is forced to continue to market cruises that may not occur and will subsequently need to be canceled," the motion said.
Haimark had hoped its sale agreement with VC2 Capital, the Los Angeles firm, would smooth its path and enable it to offer the cruises to Cuba, which are in hot demand.
The canceled Feb. 29 cruise would have taken guests from Miami to Havana, Maria la Gorda, Cienfuegos, Trinidad, Santiago de Cuba, Humboldt National Park and Holguin.