Cruise & Maritime Voyages parent company, All Leisure Group, have terminated two mv Discovery(ex-Island Venture, Island Princess) cruises early. The decision was made due to mounting losses occurring everything the ship sails. As such, she has been sold “as is” for $5 million to Liberty Resources Inc. of Nassau, Bahamas.
All Leisure Group released the following:
On 13 February 2014, the Group announced that it had written down the value of Discovery to
approximately £9.9m including spares and planned to dispose of it at the end of the summer. Although the consideration received is less than the current book value of the vessel, the Board’s decision to sell mv Discovery to Liberty also took into account the absence of the future liabilities and other uncertainties associated with many other bids. The losses attributable to mv Discovery for
the year ended 31 October 2013 were in excess of £3m. Several higher indicative offers were made but had weaker cash flow profiles given the prospect of staged payments over several years. Furthermore, during these extended payment periods, the Group would have remained responsible for warranting the vessel and the forthcoming winter lay-up costs of the vessel, together with the costs of meeting the requirements of the dry docking regime. It was the Board’s considered view that is was therefore in shareholders’ best interests to accept the lower cash offer in full and final settlement.