One Ocean Expeditions' restructuring efforts are facing challenges after unpaid trade creditors seized its chartered ice-classed cruiseship in a port in Argentina.
Despite the company telling clients that it was close to resolving its financial issues and expected to resume its Antarctic cruise programme, its chartered 8,400-gt ice-class cruiseship RCGS Resolute (built 1991) does not appear to be going anywhere anytime soon.
Francisco Venetucci, managing partner of law firm Venetucci & Associates, told Argentinian news site Infobae that he had filed the application for the arrest of the ship on behalf of an unpaid bunker supplier.
Other trade creditors, contractors and crew are also filing claims against the ship for non-payment of services and wages.
One Ocean charters the RCGS Resolute from German shipowner Bunnys Adventure & Cruise.
Well-placed sources within the expedition cruise sector said that Bunnys has become increasingly concerned about One Ocean’s ability to resolve its financial difficulties and is already sounding out the market for a new charterer.
One industry observer following the debacle suggests that Bunnys is also owed charter-hire, a breach of contract that would allow it to cancel the charter and take back the ship.
One Ocean’s inability to pay its debts would make retaking control of the ship an expensive undertaking for the shipowner, who would be required to settle all claims filed against it to secure its release from arrest and prevent it from ending up on the auction block.
TradeWinds was unable to contact Bunnys, which sources describe as being purely an investment vehicle.
One Ocean’s financial problems came to light in late October when the company began cancelling cruises citing its inability to buy fuel.
The company said at the time that it was in the process of restructuring and expected to resume operations within a short period.
In a statement released via social media, managing director Andrew Prossin blamed its plight on Russia’s Shirshov Institute decision earlier this year to abruptly terminate the charters of the 6,300-gt Akademik Sergei Vavilov (built 1988) and the 6,400-gt Akademik Ioffe (built 1989).
Prossin described the withdrawal of these ships as being an unexpected and destabilising event, and a violation of the charter contract.
Terragelida Ship Management, a Cypriot firm through which One Ocean chartered the vessels, immediately responded on social media stating that the charters were terminated early because One Ocean had not being paying charter-hire.
One Ocean could not be reached for comment.
