Cruises Investment Holding, Royal Caribbean Group to reorganize Pullmantur Joint Venture

Cruises Investment Holding and Royal Caribbean Group said they have filed for the reorganization of their Pullmantur Cruceros joint venture under the terms of Spanish insolvency laws. Cruises Investment Holding owns 51 percent of the Spanish cruise line, RCL owns the remaining 49 percent.

Pullmantur's board of directors determined that the unprecedented impact of the COVID-19 pandemic made the action necessary. Pullmantur management notified employees of the decision after filings were made with Spanish authorities.

"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 reorganization," the board stated.

The company canceled sailings through November 15, 2020. Royal Caribbean Group said that guests already booked to sail on Pullmantur will be offered the option to sail on other RCL brands including Royal Caribbean International and Celebrity Cruises. Pullmantur noted that details of the offer will be shared with guests in the near future.

Crew are staffed at minimum maintenance levels on Pullmantur's three ships and the Company will take care of their safe return home.

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 of 2020 results.