Cruise firm CMV seeks rescue deal or risks going under
Cruise firm Cruise and Maritime Voyages (CMV) is in a race against time to secure emergency funding after the coronavirus crisis left it struggling to remain afloat.
Sky News reported that Essex-based CMV, which employs 4,000 people, is in last-ditch negotiations with creditors and lenders after another rescue deal fell through.
The previous talks were reportedly abandoned after Barclays declined to offer the cruise firm a £25m loan under the Coronavirus Large Business Interruption Loan Scheme.
Now sources have told Sky that CMV is looking to complete a new deal by the end of the week.
Cruise companies have been among the worst affected by the coronavirus pandemic, which has seen passengers abandon ship amid health fears and sailing bans.
Prominent firms such as Royal Caribbean Cruises and Carnival, reportedly one of CMV’s creditors, have already suspended all voyages until 31 July.
Today Norwegian Cruise Lines said it would extend its suspension of services until the end of September due to the pandemic.
Many vessels have been stuck at sea during the crisis, having been refused permission to dock in countries wary of encouraging the further spread of the virus.
A spokesperson for the firm said: “As the majority of other cruise lines have already done or are presently doing, CMV is also looking for additional financing to improve its liquidity position until sailing will resume again.
As such CMV is presently in discussions and negotiations with a number of financial institutions and banks and is confident to finalise these discussions very shortly and so is unable to comment on or disclose details of these discussions with individual parties until they are finalised.”
In February CMV received a €60m (£53.7m) loan from Macquarie, the Australian bank, which has reportedly given subsequent aid to the beleaguered firm.
It is not currently known who else is involved in the talks, but AlixPartners and Duff & Phelps, the professional services firms, have both been advising various stakeholders on CMV’s financial position.
According to a source, an undisclosed number of CMV cruise staff remain on the firm’s liners and need to be repatriated.