Norwegian Cruise Line Holdings announced Wednesday that they have secured enough financing to keep them afloat for a year or longer, even if no ships were to sail during that time.
How They Turned A Very Bad Situation Around
This is a somewhat stunning reversal of fortunes, given that it was only a day ago that the company was painting a gloomy picture that included a possible bankruptcy.
But the situation changed overnight thanks to their ability to secure over $2 billion in additional liquidity.
In a statement released today, Norwegian Cruise Line Holdings said that, if everything goes as planned — and there was no reason to think it wouldn’t — they expect “to have approximately $3.5 billion of liquidity.”
As a result, this would leave them in a strong enough position, financially, to “withstand well over 12 months of voyage suspensions” should such a worst-case scenario come to pass.
The statement went on to say that they do not expect such a dire scenario to take place, but the liquidity “alleviates management’s concern about [Norwegian’s] ability to continue as a going concern for the next 12 months.”
This is a major turnaround given that 24-hours ago, the company’s statements had a far different tone.
“If we are unable to fulfill our liquidity needs through operating cash flows and/or borrowing under credit facilities or otherwise in the capital markets,” they said Tuesday, “our business and financial condition could be adversely affected and it may become 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.
What’s Next For Norwegian Cruise Line?
As of now, the cruise line is hoping to resume sailings as of July 1, although there are several hurdles that will have to be cleared before that is possible.
Like other lines, they are currently working on developing a series of protocols that will help keep passengers and crew alike safe in the case of further health issues arising.
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