Windstar Cruises is being sold by parent company Ambassadors Interrnational after it filed for Chapter 11 bankrupty protection in the US.
Private investment firm Whippoorwill Associates has agreed to acquire the three-vessel tall ship line in a deal which is due to be completed in May.
Whippoortwill, with more than $1 billion under management, said it intends to maintain Windstar’s business and operations and invest in the company’s growth following completion of the sale.
It is to provide $10 million in new financing through a credit facility which can be used to help support Ambassador’s and Windstar’s continuing operations during the 45-day sale process.
With its current cash availability and the additional funding, Ambassadors said it believed that it has “ample liquidity” to meet its obligations to Windtar customers and employees while the sale is being completed.
Whippoorwill president Sheeley Greenhaus said: “Windstar is a leading brand in the small ship luxury market. “Windtsar’s unique vessles and itineraries offer a one of a kind cruise experience.
“In its short tenure, the existing management team has made significant strides in transforming Windstar’s operations. The various inititaives implemented in the past yera have started to turn the buisness around.
“Once it is free of its debt burden, we are confident Windstar will be poised to grow its market hsare over the lng term.”
Ambassadors and Windstar chief executive Hans Birkholz added:
“Whippoorwill has been a strong supported of the business for the past two years and we look forward to continuing this partnership.
“The actions we are announcing will allow us to build on our strong brand position and guest experience delivery while we position Windstar for profitability and long term success.”