We are aware that the vessel will nevertheless continue operating until its scheduled drydocking sometime in November 2014.
Now the focus is on immediate restructuring the finances of the MS Deutschland Beteiligungsgesellschaft and Reederei Peter Deilmann fianances, which has the unenviable status of debtor-in-possession management. The MS Deutschland said it's aims to secure financing for the ship's overhaul, and hopes to have the vessel embarking on its scheduled world Cruise in December.
It was the worsening of the liquidity situation following the MS Deutschland bondholders meeting on the 8th of October 2014 and the lack of extra necessary mid-term funding commitments, which have been cited as the main causes for this fast, yet negative development.
A notable expert called "Wolfram Günther" (MD of One Square Advisors), was hastely appointed as Chief Restructuring Officer by the MS Deutschland’s majority stakeholders (Callista Private Equity).
Günther reconfirmed that cruises until the drydocking will continue to operate as planned. Currently, the Deutschland is on a 9 day Eastern Mediterranean Cruise from Larnaca to Valletta. Subsequently the ship will embark on an 11 day itinerary through the western Mediterranean to Lisbon before the planned upgrade.
All the wages of Employees are safely secured by the FEA (Federal Employment Agency) of Germany, during the initial "debtor-in-possession process". However suppliers, Port Agents and Tour Operators will no doubt be nervous right now, as they are vulnerable to losses with a slow legal process to claim monies owed if the restructuring does not work.
Details on the restructuring plan are expected to be presented at the 12th November 2014 bondholders’ meeting to be held in Munich and announced at a new conference the following day.
Günther still transmitted hope for the Deutschland's future and indicated that 'the measures which already started in 2013 showed positive results, but were not sufficient to bring about the necessary success. 2015 bookings are strong.
The MS Deutschland is actually the only Cruise Ship flying the German flag despite the massive growth of the German market, especially concerning AIDA Cruises and TUI Cruises. The vessel was delivered in 1998 to Reederei Peter Deilmann and is traditionally styled with majestic brass ftting and gracious lounges.
Following a successful start, this famous luxury ship and its operator later ran into troubled waters, as a direct consequence of the death of Peter Deilmann in November 2003. The efforts of his daughters' to continue operating the company since failed and restructurings/ownership changes followed. Now we are seeing a downward development and only time will tell with regards to the fate of this famous vessel.
