LLOYD WERFT, the German shipyard that is
constructing the Pride of America for Norwegian Cruise Line, was to
file for receivership protection Monday. In a statement, NCL said
the line is moving forward with plans to complete the U.S.-flagged
Pride of America "notwithstanding the shipyard's financial
restructuring" and added, in a separate statement, that it has made
all of its scheduled payments to the yard. The ship is "heavily
insured," NCL said, under a policy that will cover last month's
incident, when the ship sank in its berth during a storm.
Executives at the yard's Bremerhaven, Germany, headquarters did not
respond to a request for comment Monday. NCL said the Pride of
America will be refloated this week and then taken into drydock
where the damage can be assessed. "Efforts to re-float the vessel
are covered by insurance and are continuing as planned with only
minor delays," it said.
ROYAL OLYMPIA CRUISES put its administrative
staff in Greece on unpaid leave, as a Greek court administering its
subsidiaries' restructuring plan granted the line an extension. The
court gave the cruise line's shipowning subsidiaries until Feb. 12
to reach an agreement on a restructuring plan with the holders of
at least 51% of outstanding obligations. ROC said it put its
administrative staff on unpaid leave "pending the outcome of the
court ruling and discussions with financial institutions and
MEANWHILE, the NASDAQ stock exchange notified
Royal Olympia that it is in non-compliance with two of the
exchanges' marketplace rules. And another vessel, the Olympia
Countess, was sold at auction. Royal Olympia said it did not expect
to receive any proceeds for its own use from the sale.
NEW YORK, NEW YORK: City officials unveiled a
plan to renovate Manhattan's current cruise ship piers and
construct two new ones in neighboring Brooklyn. The proposal would
"well accommodate" the current cruise industry needs -- as well as
hopefully lure back Royal Caribbean International, which in May
will decamp to Bayonne, N.J., -- Kate Ascher, the executive vice
president of New York City's Economic Development Corporation, said
during a city council hearing Feb. 3. The plan by the EDC, which
controls the current passenger ship terminal on Manhattan's West
Side, would be spread over 10 years and cost about $250 million,
Ascher said. The EDC also would negotiate a new fee structure with
cruise lines that call in New York.
GIORA ISRAEL, Carnival's vice president of
strategic planning for Carnival Corp., New York's largest cruise
tenant, was present at the hearing, and told city council members
he considered the EDC's proposals "concepts," with various elements
still to be determined. "But the key is ... there's something on
the table," he added.
A GALLEY FIRE onboard Royal Caribbean
International's Majesty of the Seas did "minor damage" to one of
the ship's eateries, but caused no injuries to guests or crew
members, the line said. As a precaution, Royal Caribbean said the
ship's 2,376 passengers moved to their lifeboat stations for about
25 minutes. The fire was extinguished by 5:08 a.m., after burning
for about 20 minutes.
CORRECTION: The Nordic Empress isn't Royal
Caribbean International's oldest ship--it's the second-oldest.
Sovereign of the Seas debuted in 1988, and the Empress followed two
years later. Incorrect information appeared in the Feb. 3 cruise