Madrid, June 22, 2020 – Cruises Investment Holding and Royal Caribbean Group (“RCL”) have filed for reorganization of their joint venture Pullmantur Cruises under the terms of Spanish insolvency laws.
Cruises Investment Holding owns 51 percent of the Spanish cruise line, while Royal Caribbean owns the remaining 49 percent.
The Pullmantur board of directors determined that the unprecedented impact of the COVID-19 pandemic necessitated the action. Pullmantur management notified employees of the decision after submitting the required documents to the Spanish authorities.
“Despite the great progress the company made toward turnaround in 2019 and its strong commitment and the best efforts of its dedicated employees, the headwinds caused by the pandemic are too strong for Pullmantur to overcome without a reorganization,” the board said
The company canceled all voyages through November 15, 2020. Royal Caribbean Group said guests already booked to sail with Pullmantur will have the option to sail with other Royal Caribbean brands, including Royal Caribbean International and Celebrity Cruises. Pullmantur indicated that details of the offer will be shared with guests in the near future.
The crew consists of personnel with minimum maintenance levels on all three Pullmantur ships and the company will ensure their safe return home.
Royal Caribbean noted that all of its assets related to the Pullmantur Cruises joint venture had been included in the non-cash asset impairment charges reported in its first quarter 2020 results.
