Pullmantur Becomes Insolvent - Will Have To Restructure to Continue Operations

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Posted: June 22, 2020

The coronavirus pandemic has left the cruise industry reeling as cruise lines have ground to a halt since early to mid-March. Though most cruise companies have successfully weathered the storm, at one time it looked as if one of the three major cruise lines, Norwegian Cruise Line, may go out of business. But last-minute financing helped the company survive. Now the first major cruise line to become insolvent a result of the pandemic has announced.

The PointsGuy.com reports that Pullmantur Cruises cruises has become insolvent and will have to file for bankruptcy restructuring. In a statement, Pullmantur's Board of Directors said that “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 reorganization.”

Royal Caribbean Cruises owns 49% of Pullmantur, which operates three cruise ships out of Spain. 

It is not immediately clear how Pullmantur's bankruptcy will affect Royal Caribbean or if the company will attempt to return to business after restructuring.