Villa Vie Odyssey Laid Up in Cambodia Amid Fuel Crisis
Cubierto por 3 fuentesPublicado
- cruise industry newsVilla Vie Statement: ‘No Outcome Is Assured’
- prnewswireVilla Vie Residences Suspends Operations in Cambodia as It Pursues Restructuring and Recapitalization
- MARITIME_EXECUTIVEPassengers Told to Disembark as Villa Vie Residences Suspends Operations
- cruise industry newsVilla Vie Residential Ship Enters Lay Up Due to Financial Issues
Villa Vie Residences ordered the immediate disembarkation of all residents from the Odyssey, which was laid up temporarily in Cambodia. The company attributed the move to its inability to secure the fuel needed to continue operations, amid financial troubles that led to the suspension of activity in the Asian country.
Rising fuel costs
In a statement, the company explained that since a conflict began in late February it had taken steps to reduce fuel consumption, such as slowing the itinerary and spending more time in port, but that these measures were not enough to offset the sharp rise in costs. According to Villa Vie, the monthly fuel cost per cabin, which had historically been around 1,800 dollars, reached between 6,000 and 8,000 dollars in some areas of Asia, an increase the company deemed impossible to pass on to residents.
Restructuring underway
The company said it is working together with residents to coordinate the disembarkation and arrange temporary accommodations, while evaluating restructuring and recapitalization options over the next 60 days. Villa Vie noted that the process remains ongoing, that no financing or transaction has been finalized, and that "no outcome is guaranteed."
A ship with a long history
The Odyssey, built in Spain in 1993, operated from 2001 until the COVID-19 pandemic as the Braemar for the British cruise line Fred. Olsen Cruises, which expanded her to 24,344 gross tons with capacity for more than 900 passengers before withdrawing her from service. Villa Vie acquired the vessel after four years of inactivity and relaunched her in October 2024 from Belfast as part of a planned 3.5-year world cruise covering more than 425 destinations, set to conclude in November 2027. At the time of the disembarkation, the ship had completed 754 days at sea, having passed the two-year mark of the voyage last month.
Earlier signs of financial trouble
According to sources on board cited by Cruise Industry News, the company had repeatedly asked residents for additional funds, including a recent request for 360,000 dollars to cover fuel costs, and in April had offered an "emergency loan opportunity" of 3 million dollars with interest rates ranging from 12% to 24%. The company had also sought new investors, including former Bahamas Paradise Cruise Line CEO Oneil Khosa, and a group of residents organized under Sagar Capital LLC that was pushing for a cabin buyback.
