Finance Friday: Seadream Declares Second Bankruptcy

My first Finance Friday was from last Friday where I analyzed the Q2 reports.

CIN is reporting that the former founder of Seabourn Cruise Line and the current CEO of Seadream Yachts is having some troubles. His companies are declaring a second bankruptcy. Atle Brynstad “sold” some of the bankrupt companies to a non bankrupt company he owns. May be sketchy but perfectly legal. Of course now he has to answer to he share holders. Not to mention the creditors that are currently seeking 10% of what is owed to them.

This may seem bad but nothing comes close to, in this writers opinion, the more bone-head move in the industry: Renaissance Cruises. In short, they built eight ships small ships: the current Oceania fleet, Pacific Princess, Ocean Princess, Royal Princess, and the Azamara fleet. Ever wondered why they looked the same; well now you know. Anyways long story short, they just kept building and building and, tossed in the the post-9/11 drop in travel, the ships were arrested(scroll to maritime law). Here is the kicker, they couldn’t pay their fuel charges! A line that kept building ships couldn’t pay their gas bill!