Liberia-based cruise lines file for bankruptcy protection

By Kelly Yamanouchi
Advertiser Staff Writer

Royal World Cruises Inc., which operates cruises from California to Hawai'i several times a year, and an affiliated cruise line filed for bankruptcy protection yesterday.

Royal World Cruises and Olympia World Cruises Inc., both based in Monrovia, Liberia, submitted Chapter 11 filings in Honolulu because Liberia lacks reorganization law available in the United States, and Honolulu is a base of operations, said attorney Jerrold Guben, who is representing the cruise lines.

Royal World's 836-passenger Olympia Explorer ship, worth more than $60 million, was docked in Honolulu yesterday on a voyage from Southern California. The ship is set to stop in Hilo later this week, then return to California.

The Olympia Explorer is scheduled to sail two cruises from California to Hawai'i in January and another in March, according to itineraries.

Olympia World's Olympia Voyager ship is based in Florida.

In the bankruptcy filing, Olympia World and Royal World both estimated debts at more than $100 million, with more than $100 million in assets.

Guben said the cruise lines are seeking protection from international creditors. There are no plans to change the operations or staffing, according to Guben.

The cruise lines are part of Royal Olympia Cruises, which operates in the Mediterranean, Europe and Africa, and lost $400,000 in its 2002 fiscal year.

According to the company, its financial performance has been damaged by the aftereffects of Sept. 11, the war in Iraq and SARS.

The cruise lines' parent company is not part of the bankruptcy filing, Guben said.

Reach Kelly Yamanouchi at 535-2470, or at kyamanouchi@honoluluadvertiser.com.