BVI News

Norwegian says it may go out of business! BVI in danger of losing millions in recurrent revenue

File photo of the vessel Norwegian Getaway docked at the cruise pier on Tortola.

The British Virgin Islands is in danger of losing millions in revenue from one of the territory’s leading cruise companies, the Norwegian Cruise Line, who recently said they might be going out of business due to the COVID-19 pandemic.

International media reports are that Norwegian Cruise Line Holdings submitted a filing to the US Securities and Exchange Commission stating that its accounting firm has substantial doubt about the company’s ability to continue after the pandemic.

A media release from Norwegian also said that the company is making significant cost cuts.

It is granting leave to 20 percent of its estimated 4,000 on-shore staff and reducing the hours and salaries of the remaining employees — which includes almost 32,000 cruise ship staff — by 20 percent.

Massive potential loss for BVI

The cruise line is responsible for shuttling at least 4,000 or more passengers to the territory on each call. Michele Paige, the President of the Florida Caribbean Cruise Association (FCCA) of which Norwegian is a member, said more than half-million-dollars is up for grabs whenever major ships like Norwegian calls into the territory

According to cruise ship data from the BVI Port Authority, Norwegian made about 37 scheduled calls to the territory last year. By the FCCA’s logic, that could mean the BVI received at least $18 million from Norwegian Cruise Line alone last year.  

Plans to raise over $2 billion

Norwegian, in the meantime, announced plans to raise more than $2 billion in additional cash reserves to sustain the company should operations be suspended for more than a year.

It arranged to raise almost $1.35 billion in a private placement of notes due in 2024 and up to $400 million more notes through the sale of additional shares of stock. Norwegian also arranged to borrow $400 million from investment firm L Catterton through notes due in 2026.

“This strengthens the company’s financial position and ensures it is well positioned to withstand well over 12 months of voyage suspensions,” Norwegian said in a statement.

It continued: “While this is not the company’s base case expectation, the company has taken a proactive approach to protect its future given the significant uncertainty and unknown duration of the Covid-19 global pandemic.”

Norwegian, the world’s third-largest cruise operator, operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises, which together have a fleet of 28 ships with nearly 60,000 berths among them.

The company suspended sailings of all its fleets on March 14 following an industrywide shutdown that has now been extended to June 30.

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46 Comments

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  1. Things to talk says:

    There has been a consistent attempt to sabotage global economies including the virgin islands economy seemingly endorsed by a select few of our government leaders.

    Daily major global news outlets pump out well written, well timed propaganda.

    Weeks ago they were going to let hair salons open. Heard on the radio from the man many praise for keeping us safe with extreme measures.

    Extreme measures that drive us into poverty, cause us all to shop at once, crowd together at once. That does not add up.

    Seemingly a blatant attempt to spread the virus while in the midst of social distancing, and justify a further extension/re-institution of the economy shattering 24/7 curfew.

    Spread the invisible enemy and send us back to our homes, make us guess where it came from. Genius.

    Seemingly a blatant attempt to raise our fear level with a calculated increase in positive cases and justify the coming mandatory vaccine laws.

    A vaccine for a disease many will recover from. A disease that does not survive 2 minutes on surfaces in our hot humid climate.

    Does anyone remember Ecuador being big and bold in the news? Sounds like a hot place, probably right on the equator. Part of the well timed propaganda.

    The latest scare tactic is the months old mutated form of the virus. Old news, new headlines.

    Sweden the country that historically maintains neutrality in times of war. No social distancing, no vaccine promise, no coincidence. They are doing fine.

    Meanwhile today the UK is the country with the most deaths in Europe.

    France & Hong Kong the scene of violent protest. Loving that social distancing.

    One Indian city has started arresting persons without the corona tracking app on their smart phones.

    After Irma many people died from pure stress, high pressure and the prospect of economic ruin.

    Hire a few people to fuel the island people vs foreigner talk in EVERY possible article on the other local news site and throw in 7% tax to solidify the distraction.

    This was never seen before. Well played.

    Divide and conquer, or in this case divide, impoverish and control.

    Do not relax, keep your eyes and ears open to what is going on. Listen to their every word this is the New Regular.

    Like 26
    Dislike 41
    • @Things says:

      Wow you certainly march to the beat of a different drummer. Your more like a space cadet on steroids. It’s amazing the crap you spout with no facts. Just verbal diarrhea. I think you are in need of some major mental health. You should seek a provider or even a witch doctor. Whatever you need some serious help.

      Like 33
      Dislike 17
      • Gaslighting says:

        Gaslight more.

        Real mature. Name calling without actually refuting any of the ideas and statements presented.

        Like 14
        Dislike 10
      • Things to talk says:

        boy sit your 5 dollar azze down before i make change

      • Obliviius says:

        You clearly are oblivious to the purpose of thus man made virus. Dr. Fauci and Bill Gates (not an epidemiologist and never studied medicine) have patents on viral vaccines. Gee, scare people into thinking they need said vaccines and who becomes wealthy? No you, not me.

        Like 9
        Dislike 3
    • Help... says:

      People are dying! You think a hand full of money is living life to its fullest? Well, now you will have to put your life in God’s hands whether you like it or not!

      Like 8
      Dislike 5
    • Drowsy says:

      I fell asleep after the first paragraph

      Like 14
      Dislike 1
    • BobbyG. Your writing indicates that your nuttier than a squirel's breakfast. Take a chill pill, Holmes says:

      Nutball!

    • says:

      This is all false. The owner Frank Del Rio said the company is good for a year and half even if they make 0$ revenue from now (which is impossible). Norwegian Cruise Line’s balance sheet is the best sheet from all Cruise companies.

  2. 2020 says:

    18M out of 300M budget – just over 5% of annual budget. Also affecting taxi man tour guides vendors

    • hottie says:

      Too many taxi drivers here are too old and need to be retired – the young guys are much more helpful (opening doors and carrying luggage inside) and charge less money.
      The BVI’s reputation as a rip off jurisdiction starts with the taxi drivers – time to let the new competitive cost effective guys take over!

      Like 24
      Dislike 1
    • @2020 says:

      The fact is the tourism sector is dying just like the financial sector. Keeping the Territory closed till September will create even more damage. There is no future thought of survival in the BVI. Things are managed on a day to day basis with the only though of what can be put in my pocket today. Be damned with the people or the future. This is the leadership and this is the future. The treasury (if there even is one) is being depleted. There will soon be mass unemployment as the government will not be able to pay government workers. How sad the coming days will be.

      Like 19
  3. Hmmmmmm says:

    Look what one invisible virus doing.

    Like 13
    Dislike 1
  4. Click says:

    Things to talk.
    As of today Sweden ha 24,623 cases of COV19 and 3,040 deaths.

    • @Click says:

      Confirmed cases – people who were sick enough to get tested and returned positive – is logically much much lower than the real number of infected persons in an area with no social distancing.

      If one google’s “Sweden herd immunity” you will be able to see first hand the amount of negative propaganda.

      Imagine how the news must have been in world war two when Sweden chose a different path.

      In times such as this it will benefit persons to get their news from all angles.

      With all due respect in a world of subtle extremism we must all do some critical thinking to decide what the middle ground of truth is.

      Take a peep at the other side on a daily basis compare it and think for yourself: https://www.rt.com/

      • Click says:

        Things to talk.
        You are talking bull crap, check Sweden neighbor Denmark and compare Denmark 10,083 cases 514 deaths. Sweden 24,623 cases and 3,040 deaths can you see a difference Denmark did everything Sweden did not do, please use facts.

        • Ultimate response says:

          The population of Sweden is twice that of Denmark.

          Using your own numbers it seems that locking down didn’t do much to contain the virus in denmark, but ill bet it killed their economy.

          Sweden was predicted to have 40,000 DEATHS, it has 3000 and will have its herd immunity. Its a pandemic people will get sick sooner or later.

          258,354 people have died from corona virus globally.

          Over half a million people die of the flu globally every year, let that sink in. You dont even want to know how many millions die from diabetes globally.

          There is no ban on high sugar products.

          We have to ask the hard questions which in this case is “have we gone too far and where is this New Regular heading?”

          Speaking of facts if number of deaths were the main motivator then we would be fighting diabetes and not corona virus.

          As for the speculation why are trump & putin not wearing their masks, and refusing to attend World Health Organization meetings?

          Im out, didnt have to do any name calling either someone else did that for me.

          https://www.rt.com/news/488045-sweden-3000-deaths-lockdown-coronavirus/

  5. Kejdj says:

    Because it never existed in the first place? LOL. it’s a bioweap you fools

    Like 8
    Dislike 4
  6. BuzzBvi says:

    Just the Romney’s really. Not much else left from the cruise ship passengers ashore for everyone else.

  7. just wrong says:

    When the BVI got blinded by the stardust of Cruise Ships, and were distracted to the point of monatary greed this was bound to happen sooner or later. Just like when American Eagle pulled out and left us “high and dry”, and we haven’t recovered yet.

    Focus on what put the BVI on the map. Charter Yachts, and bareboats.

    Like 21
    • Star says:

      God don’t like ugly he taxes the poor expat 7 % gonna lost more more.

      Like 3
      Dislike 4
      • @star says:

        You all really need to stop blaming Gov for everything. You all coming here working 2 and 3 jobs and only paying taxes on the 1 you were here to work with. What happen to the other 2 jobs you collecting for. Where you all come from you paying taxes so why we can’t put it in place to benefit like the other countries. You all too ungrateful. If paying 7% on sending your money home is a problem then go the f*** back and us be comfortable in our own space.

        Like 4
        Dislike 2
      • @star says:

        What would be lost is imported workers. So you will be blogging word curses from your own country and you will be the one cursed. I suggest you repent of your evil ways.

  8. Carmen Morales says:

    How can i get my money back from my reservaition that i made for may 20,2020 please give me a answer.

    Like 1
    Dislike 1
  9. Richgdgy says:

    Less tourists less Drugs!

    Like 8
    Dislike 3
  10. Cathy says:

    I told my sister they would go out of business before they refund us for a trip we didn’t take. They told us we will get our money back within 90 days but I’ll have to see that before I believe it.

  11. Hmm says:

    God don’t like ugly he taxes the poor expat 7 % gonna lost more more.

    Like 2
    Dislike 4
  12. India says:

    The only people on these virus infected cruise ships for the next 10 years will be the skeleton crews taking them to India to be scrapped.

  13. Old news says:

    This article is old news. Norwegian had already raised enough money to stay in business thru the end of the year. That was two days ago.

  14. Diaspora says:

    There is a Novel Coronavirus (Covid-19) caused global recession in progress with a high probability of turning into a depression that may rival the the Great Depression of 1929-33. The impending recession/depression(?) may result in many business failures from multinational cooperations (MNC)to small mom and pop. Pay attention to the business cycle and plan accordingly. All countries will emerge from this pandemic with a new normal. Not taking this disease serious and expect things to return to regular is false move and twisted expectation. Be safe.

    Like 4
    Dislike 1
  15. Ausar says:

    These types of news usually have major global implications, for the worst.

    And we’re no different in this country!

    Certainly, COVID has preety much destroyed the cruise industry for this year!

    Let’s hope that with the federal financial bailouts of 2020, this industery can recover and thereby, our local economies!

  16. Eric says:

    I am open to the possibility that any conspiracy theory concerning the virus might be valid. However without any evidence these theories are actually the real distraction. What is known has been realized by the scientific community. Without science we are left with useless prayers and theories based on guy feelings. Look at California’s reliance on medical facts and statistics. I believe it will be evident in months ahead that it’s approach was wise and that the states going back to business as usual in near total denial will cause longer term financial disaster for everyone. We don’t need good luck. We have the information we need butmany choose to ignore it and play games with reality.

  17. AMR inc. says:

    Blessed day I am S.Samuels co owner of Alkebulan Minds Recycling Inc. We been granted the opportunity to create a viable recycling plant on Tortola creating over 150 jobs also opening a new financial revenue to our government, with out asking for 1 cent
    I think now is the time our government/leaders take us/our plan into consideration
    Thank y’all

  18. Commentator says:

    The cruise industry will be more or less dormant in the BVI for a while.What is going to happen to all those unpaid loans for safaris etc.The Government allowed the taxi industry to become over saturated based on cruise ship passengers and this is the result.Sa,sad times indeed.

  19. out of business??? says:

    not what I heard on a recent business program with the CEO – they expect to start sailing again in late 2020 and bookings for 2021 are in line with previous years. Norwegian had the fewest C-19 cases of any of the cruise lines and took strong early measures to prevent the virus from spreading on their ships. Doubtful they are going out of business as they just secured billions of $$ in loans to see them thru

  20. Anonymous says:

    NNNOOOOO…..my favorite cruise line. I hope they survive.

  21. Nooo says:

    Cruise ships are wack…ppl get thrown overboard drugged raped all kinda shizz…no police no order onboard.

  22. Ambassador says:

    The loss of NCL will NOT put a damper on the Taxi Association on VG. As it never benefit the T.A.
    It will be sad to see them depart anyway.

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