Norwegian Cruise Line warns of possible bankruptcy amid coronavirus outbreak


FILE – In this June 25, 2005, file photo, the cruise liner Norwegian Jewel built at the ship yard Meyer in Papenburg, northern Germany, goes down the river Ems. Two cruise ships were headed Wednesday, March 18, 2020, to Honolulu after being turned away by other ports. There were no positive cases of coronavirus on either vessel, officials said. The ships are the Maasdam, operated by Holland America Line, and the Norwegian Jewel, owned by Norwegian Cruise Line. (AP Photo/Joerg Sarbach, File)

PORT CANAVERAL, Fla. (WESH) — A recent filing with the Securities and Exchange Commission from Norwegian Cruise Line Holdings LTD describes financial problems due to COVID 19 and indicates it is possible the company will have to file for bankruptcy.

The filing, dated May 5, says the company will need additional financing moving forward.

The company said there’s “substantial doubt” about its ability to continue as the coronavirus pandemic continues to keep the entire cruise industry shuttered.

“Our financial statements contain a statement regarding a substantial doubt about the company’s ability to continue as a going concern,” the company says in the filing.

The company writes about the need for money: “We anticipate needing additional financing, and such financing may not be available on favorable terms, or at all.”

The documents paint a possible future for the company: “If we are not able to fulfill our liquidity needs through operating cash flows and/or borrowings under credit facilities or otherwise in the capital markets, our business and financial condition could be adversely affected and it may be necessary for us to reorganize our company in its entirety, including through bankruptcy proceedings, and our shareholders may lose their investment in our ordinary shares.”

The cruise industry brings in millions in revenue to Port Canaveral and surrounding areas, but the industry has been halted due to the coronavirus since mid-March.

The documents mentioned the CDC’s ‘no sail order’ for the cruise industry. They add so far, they have voluntarily suspended all voyages through June 30.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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