Cruises Investment Holding (CIH) and Royal Caribbean Group (RCL) have filed for ‘reorganisation’ of their Pullmantur Cruceros joint venture.
The three-ship Madrid-based line is 51% owned by CIH and 49% owned by RCL, and had previously cancelled all sailings through to November 15.
Pullmantur’s board of directors said the impact of the Covid-19 pandemic had made the action necessary, and notified employees of the decision after filings were made under the terms of Spanish insolvency laws.
“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 reorganisation,” the board said in a statement.
Royal Caribbean Group said guests already booked to sail on Pullmantur will be offered the option to sail on other RCL brands such as Royal Caribbean International and Celebrity Cruises. Details of the offer will be shared with guests in the near future, Pullmantur said.
The crew, currently staffed at minimum maintenance levels, will be repatriated.
RCL noted that all of its assets related to the Pullmantur Cruceros joint venture had been included in the non-cash asset impairment charges reported in their first quarter 2020 results.