- Legal States
Filip Mishevski July 20, 2022 3 min read
Royal Caribbean Group Buys Genting Group’s Endeavor Cruise Ship
Royal Caribbean Group, a global cruise ship operator, has announced that it has received the necessary court approvals to purchase Endeavor, an ultra-luxury cruise ship. When the ship officially joins the Group, which is set to be done this month, it will be renamed to Silver Endeavor.
The Cruise Ship’s Purchase Price Was Lower Than Its Construction Cost
The construction cost of Endeavor was around $385 million, but Royal Caribbean Group reached an agreement to purchase the vessel for a price of $275 million. Roberto Martinoli, the CEO and president of the group’s Silversea Cruises brand, shared his thoughts on the latest development.
He said that the expedition cruising industry will continue experiencing “accelerated growth” as high-end customers will continue to search for traveling options to destinations that are hard to reach, including both polar regions.
Endeavor was entirely financed via a 15-year unsecured term loan, which was guaranteed by Euler Hermes, a German credit agency. With the acquisition, the loan will be assumed by Royal Caribbean Group.
Royal Caribbean Group’s CEO, Jason Liberty, stated that with the Endeavor acquisition, the company will grow its “world-class fleet” and increase its profitability. Endeavor is scheduled to set sail in the 2022/2023 winter season and spend its inaugural season in Antarctica.
Genting HK’s Crystal Cruises Was the Previous Owner of Endeavor
Endeavor, which was labeled by The Maritime Executive as the world’s most luxurious cruise ship, was previously owned by Genting Group. The company was faced with massive liquidity problems at the start of 2022 which is why it appointed liquidators on January 20.
In a Hong Kong Stock Exchange filing, which was submitted this Tuesday, Genting Group stated that the group had “severe liquidity constraints” and hence, the primary duty of the liquidators would be to maximize the value and returns of the company’s creditors.
The filling added that the Group is currently not able to operate its cruise ships and it is highly likely that it will be unable to resume these operations in the future. Apart from Crystal Cruises, Genting’s business arms feature MV Werften Holdings Limited, Dream Cruises, and Star Cruises.
Lim Kok Thay, the majority owner at Genting, resurrected his cruise ship ambitions recently by purchasing Resorts World Cruises.
As for Endeavor, Royal Caribbean Group will protect the deposits made by guests before the ship was purchased. Liberty stated that they will most likely receive the deposits back, but if they don’t, the company will give them a refund.
Liberty added that the company’s purpose is to deliver the best vacations in the world and that is why the company will go “above and beyond” to take care of its guests.