Creditor takes control of Villa Vie Odyssey liner in Cambodia — CBS News
A creditor has taken control of the Villa Vie Odyssey cruise liner, which remains in the Cambodian port of Sihanoukville. The ship’s residents were informed that the lender had taken possession of it. According to company founder and CEO Mike Petterson, the creditor is now responsible for paying the crew, fuel, operations and preservation of the liner.
As CBS News reports, passengers were given only the weekend to collect their belongings, after which the ship became inaccessible to them. According to several of the outlet’s sources, Odyssey is expected to be moved from Cambodia to Singapore soon, where the liner could later be put up for auction.
Search for an operating partner
Petterson said the process could take from 30 to 90 days, and the company hopes to restructure during that time. According to him, management is seeking an operating partner and believes that, if there is a funded plan, the creditor may agree to further negotiations over the ship.
In a message to residents, the company said that the sale of the liner has not yet been planned and that its future has not been finally determined. At the same time, some passengers criticized management’s optimistic statements, fearing that they create false hope.
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Financial problems and a buyout attempt
Internal communications reviewed by CBS News indicate that the company had financial difficulties at least three months before the ship arrived in Cambodia. The documents also show that management sought to raise additional funds from residents.
A group of residents tried to buy the liner from the company. According to CBS News sources, 169 people pledged to provide additional funding for the project, but the creditor refused to finance them. One resident, Joel Graiff of Florida, said he spent $350,000 on a cabin but lived aboard the ship for only 26 days after moving in in October.
A message to residents also stated that a Villa Vie Chapter 11 bankruptcy would cost about $3 million during the first 60 days. The company said it is considering supporting operations through DIP financing and maintenance fees from residents.
