Renaissance Cruises to get cash infusion

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NEW YORK -- Shareholders of R Holdings, parent of Renaissance Cruises, approved the sale of a majority stake in the premium cruise line to Malvern Maritime.

Existing investors, including CSFB Private Equity, also are increasing their investment in R Holdings as part of the agreement.

Malvern Maritime is led by Peter Gram, a London-based Norwegian ship owner and investor who will join the board of R Holdings and serve as chairman.

Frank Del Rio, Renaissance's co-chief executive officer, said the deal includes a debt restructuring and increases Renaissance's liquidity by $300 million.

In February, Fort Lauderdale, Fla.-based Renaissance accepted the last of a series of ships in a $1.5 billion building program.

Del Rio challenged European press reports that Renaissance lost $95 million on revenue of $580 million in 2000, adding "This is not a bailout. It's an infusion of fresh capital."

Said Gram, "My group includes significant maritime experience, and we look forward to working with [Renaissance] to ensure it is fully equipped to continue to develop its strengths."

Malvern Maritime is expected to name a new senior manager to oversee Renaissance.

With regard to reports that Renaissance soon will switch to contractors to oversee the marine/technical and hotel operations aboard its ships, Del Rio said: "Every company continues to look for ways to deliver its products in the best fashion."

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