Pullmantur files for reorganization

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The Zenith, a ship that left Pullmantur's fleet at the end of 2019.
The Zenith, a ship that left Pullmantur's fleet at the end of 2019.

Spanish cruise line Pullmantur has filed for reorganization under Spain’s insolvency laws.

Cruises Investment Holding owns 51% of the cruise line, and Royal Caribbean Cruises Ltd. owns the other 49%. RCCL said they filed for the reorganization of the Pullmantur joint venture due to the impact of the Covid-19 pandemic. 

“Despite the great progress the company made to achieve a turnaround in 2019 and its huge engagement and best efforts of its dedicated employees, the headwinds caused by the pandemic are too strong for Pullmantur to overcome without a reorganization,” Pullmantur’s board said in a statement.

The cruise line canceled sailings on the line’s three ships through Nov. 15. RCCL said that guests booked to sail on Pullmantur would be offered the option to sail on Royal Caribbean International or Celebrity Cruises. 

Pullmantur’s three ships are all former Royal Caribbean International vessels: the Monarch, Sovereign and Horizon (launched as the Nordic Empress in 1990).

There are indications that Pullmantur could reduce its fleet to one ship, said UBS analyst Robin Farley in a note on Tuesday. She said that a ship broker was listing the Monarch and Horizon for sale, indicating that “perhaps there could be a reorganization of operations with the one ship remaining.”

However, she also reported that “items of value were being dismantled from the interior of the ships, so they may be sold for scrap rather than operations.”

“Pullmantur’s three ships could be scrapped since they are all about 30 years old, and now that there are younger ships available for sale, older ships are less likely to find a buyer,” Farley said.

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This report was updated on June 23 with information about Pullmantur putting ships up for sale.

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