Villa Vie Residences, the Florida-based operator of the luxury cruise ship MV Odyssey, is planning to file for Chapter 11 bankruptcy after running out of money due to high fuel costs.
What happened
The MV Odyssey, which was on a continuous around-the-world voyage, has been affected by the war with Iran, which quadrupled fuel costs. The company's CEO, Mikael Petterson, stated that the ship's fuel costs rose from $700 per ton to between $2,000 and $3,000 per ton. Despite efforts to slow down the itinerary and reduce costs, the company was unable to overcome the financial struggles.
The MV Odyssey had over 200 passengers on board, mostly Americans, who had purchased permanent cabins for several hundred thousand dollars. Some passengers had sold their homes to become residents of the ship, which offered a 15-year minimum guarantee of residency. However, the company's financial struggles have left passengers stranded in Cambodia, with some facing homelessness and financial uncertainty.
Passenger Benjamin Schatz, a retiree who had been living on the ship for over a year, expressed shock and heartbreak at the situation. The company's CEO stated that they had borrowed money and stretched their payrolls as far as they could, but were now at a breaking point and in need of capitalization.
