Norwegian Cruise Line Holdings Expresses Uncertainty for the Future

In a securities filing provided to the United States Securities and Trade Fee on Tuesday, Norwegian Cruise Line Holdings Ltd. (NCL) warned it may well have to seek individual bankruptcy security, noting “management’s conclusion regarding considerable question about the Company’s capability to continue as a likely concern.”

The filing claims, at December 31, 2019 and March 31, 2020, NCL was in compliance with all of its debt covenants on the other hand, if it are unable to continue to continue to be in compliance with these agreements, the enterprise would have to seek further amendments and that “no assurances can be manufactured that these amendments would be approved by our creditors.” Ought to an celebration of default underneath any debt settlement take place, then all of NCL’s fantastic debt and by-product agreement payables could come to be owing and all debt and by-product contracts could be terminated. This, in accordance to CNBC, places the enterprise at risk of individual bankruptcy.

“COVID-19 has experienced, and is expected to continue to have, a substantial effects on our financial situation and functions, which adversely impacts our capability to acquire satisfactory financing to fund ensuing reductions in cash from functions,” the filing claims. “The recent, and uncertain future, effects of the COVID-19 outbreak, such as its influence on the capability or need of people to vacation (such as on cruises), is expected to continue to effects our effects, functions, outlook, plans, objectives, development, status, cash flows, liquidity, demand from customers for voyages and share rate.”

It proceeds: “If we are not ready to satisfy our liquidity requires by way of functioning cash flows and/or borrowings underneath credit rating services or in any other case in the cash markets, our small business and financial situation could be adversely influenced and it may well be vital for us to reorganize our enterprise in its entirety, such as by way of individual bankruptcy proceedings.”

In a separate announcement on Tuesday, NCL Corporation Ltd., a subsidiary of Norwegian Cruise Line Holdings Ltd., declared a non-public placement of up to $four hundred million by an affiliate of L Catterton, a non-public equity business.

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