Royal Olympic Cruises will forfeit two vessels

By Andrew Gomes
Advertiser Staff Writer

Royal Olympic Cruises Inc. said yesterday it will forfeit possession of two ships, including one used for Hawai'i service, and allow lenders to proceed with a judicial auction of the vessels.

Royal Olympic, based in Piraeus, Greece, made the concession in return for being released from loan obligations for the two ships, which it owned through Liberia-based subsidiaries Royal World Cruises Inc. and Olympia World Cruises Inc.

The Olympia Explorer and Olympia Voyager cruise liners have been berthed in Los Angeles and Port Everglades, Fla., respectively, and prohibited from sailing since shortly after Royal World and Olympia World filed for bankruptcy in Honolulu last month.

The Explorer was forced to cancel Dec. 22, Jan. 5 and Jan. 19 cruises to Hawai'i. The Voyager canceled Jan. 2 and Jan. 19 sailings in the Caribbean. Both ships were scheduled to start Mediterranean cruises in April.

Royal Olympic said the lenders, if they acquire ownership of the ships at court auction, have agreed to consider arranging for the ships to fulfill existing charters or commitments through the summer, including a contract to use the two ships as floating hotels in August during the Olympic Games in Athens.