Friday, April 1, 2011

Winstar Cruises Reorganizes

Windstar Cruises
Has a New Future

Ambassadors International, Inc., parent company of Windstar Cruises,  announced that it has entered into an agreement with Whippoorwill Associates, Inc., as agent to sell the cruise line through a court-supervised sale process.  Ambassadors and its U.S. subsidiaries today voluntarily filed petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

UPDATE:  May 19, 2011
New Buyer Victorious in Bidding War

The U.S. Bankruptcy Court in Delaware approved the sale of Windstar Cruises and other assets to TAC Cruise LLC, an affiliate of Xanterra Holding Corp.

The sale is expected to close the week of May 23.  TAC is expected to pay $39M in cash for the cruise line.   Xanterra Holdings Corp. is based in Colorado and has been in the hospitality industry for 100 years.

No Impact On Current Operations

According to a statement released by the company, "Ambassadors and Windstar intend to continue normal business operations during the sale process, which is proposed to be completed in approximately 45 days.

Windstar also plans, subject to court approval, to continue to:
  • Operate all Windstar cruises as scheduled;
  • Maintain all of Windstar's customer programs and policies;
  • Honor all Windstar fares and reservations, including charter contracts;
  • Provide commissions and payments to its travel partners as usual and employee wages and benefits without interruption; and
  • Pay all Windstar vendors and suppliers for goods and services received both before and during the reorganization process in connection with the sale. 
See the complete details of this transaction ...  Ambassadors International Enters Into Agreement to Sell Windstar Business and Operations to Private.

Windstar Cruises consists of a fleet of three small ships, Wind Spirit, Wind Star, and Wind Surf.

The small, sleek yachts of Windstar are made for seeing the world quite literally from a different point of view.

For the small ship lover, this is good news that the cruise line will continue operations.   According to the press release, there are even plans for expansion under the reorganization.

We will continue to monitor this story and bring you updates as additional details are released.

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