Norway out: Cruise operator may not survive

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Norwegian Cruise and rivals Carnival Corp and Royal Caribbean Cruises have been among the most high-profile victims of the pandemic. Photo: Bloomberg

Reuters

May 06 2020 02:30 AM

Norwegian Cruise Line Holdings , the world's third-largest cruise operator, raised doubts about its ability to keep running as a business yesterday, the first in the sector to signal it may succumb to the coronavirus crisis.

The company's shares slumped about 14pc in early trading as it launched a $1.6bn (€1.47bn) offering of shares and bonds in a scramble to raise money. It also announced a $400m investment from a private equity firm.

Norwegian Cruise and rivals Carnival Corp and Royal Caribbean Cruises have been among the most high-profile victims of the pandemic after deadly outbreaks on some cruise ships led to extended port quarantines in Japan and California.

The industry was left out of a $2.3 trillion US stimulus package for troubled companies as the major players are all incorporated outside the United States.

Reuters