Ambassadors International Inc. missed the deadline to file its annual Form 10-K with the SEC and warned that when it does, it might express “substantial doubt about our ability to continue as a going concern.” In a notice to the SEC, Ambassadors said “management believes that the Form 10-K will be filed as soon as reasonably practicable and in no event later than the 15th calendar day following the prescribed due date.” The notice was filed April 1. Ambassadors, parent of Windstar Cruises, said it was not able to file the Form 10-K “because it has experienced delays in the collection, analysis and disclosure of certain information required to be included.…This included the review and analysis of the fair value of long-term assets, renegotiating existing debt obligations, including those debt obligations for which the registrant [Ambassadors] was not in compliance with certain financial covenants as of Dec. 31, 2008, and negotiating other sources of capital.

“Additionally, due to the current global downturn in the economy, specifically the decrease in vacationers’ discretionary spending and the direct impact this has on the reduction in cruise bookings, decrease in corporate spending on incentive programs and the tightening effect of the credit market on financing for construction projects, the registrant is currently seeking additional sources of capital.”

Ambassadors said in February that it wants to sell its non-Windstar assets. “As a result of the registrant’s need for additional capital and other factors, if the registrant does not sell assets or raise additional capital prior to the date of filing, the report from our independent registered public accounting firm regarding our consolidated financial statements for the year ended Dec. 31, 2008, may include an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern,” the company said in the SEC filing.

Ambassadors said its preliminary, unaudited results show a net loss of $34.6 million in 2008 compared to $26.9 million in 2007. Total revenue for 2008 is anticipated to be $274.6 million, compared to $287 million in 2007, a 4.3 percent decrease. The decline was attributed to lower revenues from marine and insurance operations offset by an increase in revenue from cruise and events operations. Ambassadors, which shut down its Majestic America Line, is trying to sell several riverboats. For more information, visit www.ambassadors.com.
 

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