Norwegian Dream sale fails

[yorkshirephil]

This could cause some interesting comments. Is this an early sign of the recession taking an effect on cruising or would it have happened anyway What next, will some of the big cruise lines defer orders for new ships, or even cancel? Something will have to give soon.

STAR Cruises’ $218m sale of the Norwegian Dream to Louis Cruises has fallen through after the Cyprus-based line failed to take delivery of the vessel.

The Malaysian-owned Star Cruises said that a Memorandum of Agreement signed with Louis Cruises had been brought to an end at 00-06 hrs London time today.

In a statement to the Singapore and Hong Kong Stock Exchanges Star Cruises said that it had served notice on Louis and Marzio Shipholding that the agreement had been brought to an end following the “the buyers reported rescission or termination” of the MOA and their failure to accept delivery of the Norwegian Dream.

The deal by Louis Cruises to buy the French, 1992-built Norwegian Dream, which has capacity for 2,156 passengers for $218m was one of two struck with Star Cruises on April 23 this year. It also signed an MOA to acquire the 1992-built Norwegian Majesty for $162m, a deal that has since been completed.

Under the terms of the agreement the Norwegian Dream was to be delivered to Louis and Marzio with 14 weeks of the signing of the MOA and it was then to be chartered back to NCL unit Ocean Dream a hire fee of about $60,000 a day. It would then be re-delivered to the Cyprus-based owner in November.
Louis and Marzio were to have paid the entire $218m purchase price in cash on taking delivery of the Norwegian Dream. The acquisition was funded by DVB Bank.

Star Cruises is now mulling legal action and said “They are presently taking legal advice in relation to the enforcement of their rights against the buyers.”

The $162m sale of the Norwegian Majesty to Louis Cruises, also sealed on April 23, was completed on the 29 July this year in accordance with the terms of the agreement.

[sparkieplug24]

It probably would have happened anyway and is coincidence. But it is interesting that its happened at this time and does make you wonder doesnt it??

[wakelover]

Interesting to read your thread of October.. now we are in the thick of it. It seems the new ships are all going ahead... Azura, Equinox etc etc etc.

..and I think most of us have seen slight changes onboard. I often wonder whether the changes are necessary or whether the lines just use the recession as a valid reason for change 'while they can' so to speak!

I definitely think there are some excellent offers out there though... lets hope that remains for years to come giggle ... even if the pillow mints dont roflmao

[chyanmor]

Interesting to read your thread of October.. now we are in the thick of it. It seems the new ships are all going ahead... Azura, Equinox etc etc etc.

..and I think most of us have seen slight changes onboard. I often wonder whether the changes are necessary or whether the lines just use the recession as a valid reason for change 'while they can' so to speak!

I definitely think there are some excellent offers out there though... lets hope that remains for years to come giggle ... even if the pillow mints dont roflmao

Most new ships have been designed way before the recession kicked in, I think it would be interesting to see if anything does get launched in 2010. Gradually things like hotels are stopping their refits etc so it may be such things as much needed refits on cruise ships might get put of another year or so.

[wakelover]

It always fascinates me when they lengthen the ships.. how clever is that? ohsohappy