NEW YORK -- Renaissance Cruises is saddled with $110 million in
passenger claims, and travel agents shouldn't expect to hear about
refunds any time soon, according to a lawyer for the bankrupt line.
Renaissance attorney Paul Singerman told Travel Weekly the line
also is dealing with $1.1 billion in ship-related debt and $75
million in claims from suppliers.
He said the bankruptcy proceeding will be focused initially on
efforts to reorganize the company for Tahiti cruises with two of
its ships. Information on the claims process is expected at a later
date.
Because Renaissance did not operate directly from U.S. ports,
passenger funds were not protected by the Federal Maratime
Commission's bonding regime.
Singerman said the company relinquished control of eight of its
ten ships and is seeking to reorganize as an operator of Tahiti
cruises with the R3 and R4.
Under "special financing arrangements and special tax
arrangements with the Polynesian government," Singerman said those
ships are committed to the Tahiti market and cannot be redeployed
without government approval.
Nominal control of the fleet has passed to a group of French
banks led by Credit Agricole Indosuez.
The banks agreed to pay crew wages for September and
repatriation expenses for skeleton crews who will sail the
company's vessels to Gibraltar, where they will be held, according
to Singerman.
But apparently not all of the ships are finding their way to
Gibralter.
Singerman said "several ships have been subject to action in
some ports." As of Oct. 1 two ships were en route to Gibraltar, two
were in Rome, two were in Tahiti, and one was in Dover, England.
Singerman could not account for the other three.
He declined to comment on a French report that port authorities
in Papeete, Tahiti, seized two ships over nearly $1 million in
unpaid fuel bills. He also declined to comment on reports that R7
was arrested in Dover over alleged unpaid debts to a local shipping
agency.
Meanwhile, the French conglomerate Alstom revealed that it
guaranteed the loans that financed most of the Renaissance ships,
which were built at Alstom's Chantiers de l'Atlantique
shipyard.
Alstom is now "working with all the concerned parties to examine
and evaluate the complex situation arising from the Chapter 11
proceedings and possible liquidation of Renaissance Cruises and to
mitigate the damages," according to an Oct. 1 statement on the
company's Web site.
Alstom said, "All options are being explored ... to ensure there
will be no distress sale of the cruise ships."
In the wake of the line's closure, more suppliers are stepping
up to claim would-be Renaissance passengers.
Royal Caribbean Cruises Ltd. is offering an onboard credit to
every guest previously booked to sail with Renaissance who books a
cruise on Royal Caribbean or Celebrity by Oct. 31.
Also, Micato Safaris is giving customers a credit of $500 on the
cruise portion of any Micato-Renaissance cruise-safari package. The
credit can be applied to any Micato land program departing through
the end of 2002. Agents will still earn commissions on the full
package price.