Cruises Investment Holding and Royal Caribbean Group have filed for the re-organisation of their joint venture cruise operation, Pullmantur Cruceros, under Spanish insolvency laws.
Cruises Investment owns 51% of the Spanish cruise line, while Royal Caribbean holds the remaining 49%.
Pullmantur’s board explained that the unprecedented impact of the COVID-19 pandemic had made this action necessary. The management notified employees of the decision after filings were made with the 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 re-organisation,” the board said.
Pullmantur had already cancelled sailings through 15th November, 2020.
Crew are on board on Pullmantur’s three ships were at minimum maintenance levels and the company will take care of their safe return home.
RCL also said that all of its assets related to the Pullmantur Cruceros joint venture had been included in the non-cash asset impairment charges reported in the first quarter 2020 results.