Royal Caribbean Group (RCL) and Cruises Investment Holding said they have filed for the reorganization of their Pullmantur Cruceros joint venture under Spanish insolvency laws.
Cruises Investment Holding owns 51 percent of the Spanish cruise line, while RCL owns 49 percent.
Pullmantur's board of directors determined that the unprecedented impact of the COVID-19 pandemic made the action necessary. Pullmantur management notified employees of the decision after filings were made with 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 reorganization," the board said in a press release.
The company canceled sailings through Nov. 15, 2020. RCL said guests booked on the canceled voyages have the option to sail on other RCL brands, including Royal Caribbean International and Celebrity Cruises. Pullmantur said details will be shared "in the near future.
Pullmantur operates three aging ships that formerly were part of the Royal Caribbean International and Celebrity Cruises fleets - the Monarch, Sovereign and Horizon. The vessels currently are staffed at minimum maintenance levels.
RCL noted 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 of 2020 results.
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