Kata Posted March 17, 2020 Report Share Posted March 17, 2020 What will happen if this is the case with FCC or we will just lose our money? Quote Link to comment Share on other sites More sharing options...
Ampurp85 Posted March 17, 2020 Report Share Posted March 17, 2020 Doubt RCCI will go bankrupt for several reasons. The main being that the government will bail out, to a certain extent, at least Carnival and Royal. Cruising is good for the economy and a favorite among the older more well-off traveler. While millennial's mostly prefer to "gram" experiences, those with actual sense want a vacation that provides a good time and value. In the infinitesimal case of RCCi filing bankruptcy they may choose to do a few combined bon voyage cruises to appease those with FCC or current bookings.......or yes you will lose the money. This is an unprecedented time, who knows how many businesses will have to restructure. Ellen#1, CruisingKitty, Neesa and 1 other 4 Quote Link to comment Share on other sites More sharing options...
michelle Posted March 17, 2020 Report Share Posted March 17, 2020 Do not think that is a worry at this point - but I get why people would be concerned ! they are a great and very supportive company teddy, JLMoran, CruisingKitty and 11 others 13 1 Quote Link to comment Share on other sites More sharing options...
KenCP Posted March 17, 2020 Report Share Posted March 17, 2020 Royal currently has enough money to operate for quite some time. They have just uncreased their line of credit by $500 million. The US government will be there to help if it came to that As well they many ships that if they had to they could sell a ship or two. If everyone booking was to be refunded, then it may cause a major cash flow issue for all the cruise lines. They are not currently operating so the expenses for the ships are drastically lower at the moment as well. Kata, Ogilthorpe and CruisingKitty 3 Quote Link to comment Share on other sites More sharing options...
whenismynextcruise Posted March 17, 2020 Report Share Posted March 17, 2020 Is a bail out from "the government a reality here? These are not US based companies right? Most of the cruise companies register thier ships at forerign ports. At least that is how it seems to me. I fully admit that I could be wrong here. I am sure one of the experts here can speak to the details. Quote Link to comment Share on other sites More sharing options...
twangster Posted March 17, 2020 Report Share Posted March 17, 2020 3 hours ago, whenismynextcruise said: Is a bail out from "the government a reality here? These are not US based companies right? Most of the cruise companies register thier ships at forerign ports. At least that is how it seems to me. I fully admit that I could be wrong here. I am sure one of the experts here can speak to the details. It's complicated. Just like the big automakers being multinational corporations is complicated. While the asset value of a ship maybe carry a flag of convenience there are domestic taxation for certain aspects of the business just like with any American company that does business internationally. One thing to consider are the spin off jobs and supply chain of the cruise industry. When the big automakers were bailed out it wasn't just because they were American companies, the fear was the impact to the supply chain that feeds the automakers. That is what would hit so many Americans. Just like our own president is proud to pay no tax and calls that being "smart" many American companies work the tax code to their benefit to minimize tax burden. All American companies do this, the bigger ones have more opportunity to do it better. CruisingKitty, Kata, PRebecca and 1 other 4 Quote Link to comment Share on other sites More sharing options...
JimnKathy Posted March 17, 2020 Report Share Posted March 17, 2020 I just bought some RCL stock at $28 a share...Coronavirus is just a short-term blip creating a terrific price point for long-term investors to build a position. Hutcherl, Neesa, Ellen#1 and 4 others 7 Quote Link to comment Share on other sites More sharing options...
Rose City Cruiser Posted March 17, 2020 Report Share Posted March 17, 2020 The smaller cruise lines will be more exposed to bankruptcy compared to the big players like Royal and Carnival. Just to answer the OP's question, customers who have FCC/monies paid to Royal will most likely SOL. Other creditors will have priority. There are some travel insurance plans that will cover those type of loss. Some credit cards may even cover that. The premium ones may just credit you out of "goodwill". Kata 1 Quote Link to comment Share on other sites More sharing options...
steverk Posted March 17, 2020 Report Share Posted March 17, 2020 I really don't think bankruptcy of Royal, Carnival or Disney is likely. If it does happen (to them or someone else) the customers would be at the end of the line of creditors, and would have a very weak "legal" claim to a refund. However, the company would probably reorganize out of bankruptcy or be sold. Either way, the court, and creditors, would probably see value in keeping the customer base happy and would honor your tickets and other purchases. Kata 1 Quote Link to comment Share on other sites More sharing options...
mook1525 Posted March 17, 2020 Report Share Posted March 17, 2020 I think NCL is in real trouble more so than Royal. Kata 1 Quote Link to comment Share on other sites More sharing options...
Momof4crazytocruise Posted March 17, 2020 Report Share Posted March 17, 2020 Interestingly enough, I just bought our travel insurance policy on our cruise planned this fall, figuring rates may skyrocket soon. There was an add-on option for coverage in case of insolvency. I opted to add it on. Kata 1 Quote Link to comment Share on other sites More sharing options...
Hutcherl Posted March 17, 2020 Report Share Posted March 17, 2020 4 hours ago, JimnKathy said: I just bought some RCL stock at $28 a share...Coronavirus is just a short-term blip creating a terrific price point for long-term investors to build a position. Interesting. I have been contemplating doing the same thing. I have faith in the company and the industry to make it back. Just trying to figure where the bottom might be. Quote Link to comment Share on other sites More sharing options...
jeffmw Posted March 17, 2020 Report Share Posted March 17, 2020 RCL will not go bankrupt. This isn't a lengthy enough issue and the cruise industry is booming. They'll cut some costs to get through this and be fine. Kata 1 Quote Link to comment Share on other sites More sharing options...
coneyraven Posted March 17, 2020 Report Share Posted March 17, 2020 Well, no more $18 drink packages Brobbins246 and SpeedNoodles 2 Quote Link to comment Share on other sites More sharing options...
ChessE4 Posted March 17, 2020 Report Share Posted March 17, 2020 6 minutes ago, jeffmw said: RCL will not go bankrupt. This isn't a lengthy enough issue and the cruise industry is booming. They'll cut some costs to get through this and be fine. And if we get that $1000 per person they are talking about, I'm all for booking another cruise! chrisb732 and coneyraven 2 Quote Link to comment Share on other sites More sharing options...
coneyraven Posted March 17, 2020 Report Share Posted March 17, 2020 4 minutes ago, ChessE4 said: And if we get that $1000 per person they are talking about, I'm all for booking another cruise! Or purchasing more RC Stock Hutcherl and chrisb732 2 Quote Link to comment Share on other sites More sharing options...
ChessE4 Posted March 17, 2020 Report Share Posted March 17, 2020 Just now, coneyraven said: Or purchasing more RC Stock Roger, I am close to pulling the trigger on that. coneyraven 1 Quote Link to comment Share on other sites More sharing options...
Vancity Cruiser Posted March 17, 2020 Report Share Posted March 17, 2020 55 minutes ago, jeffmw said: RCL will not go bankrupt. This isn't a lengthy enough issue and the cruise industry is booming. They'll cut some costs to get through this and be fine. I think many people would be shocked at how close to the line many large corporations operate. The assumption is that because they have millions (or even billions) in assets they are well off and secure. (I used to be one of those people who made this assumption). That is not always the case. A lot of time more assets just mean more debt and overhead and just like the average American with their nice house and nice cars (and all their debt) missing a couple paychecks could break them. I don't know if that is the case with RC (and I hope it isn't) but its always a possibility. Kata and Chadster 2 Quote Link to comment Share on other sites More sharing options...
bhageerah Posted March 17, 2020 Report Share Posted March 17, 2020 2 hours ago, ChessE4 said: Roger, I am close to pulling the trigger on that. My GOD I can not believe how cheap it is now ........after watching it for a few days I am going to have to do the same! You KNOW that it is going to start to go through the roof after this whole mess is over! Kata 1 Quote Link to comment Share on other sites More sharing options...
Bean79 Posted March 18, 2020 Report Share Posted March 18, 2020 16 hours ago, bhageerah said: My GOD I can not believe how cheap it is now ........after watching it for a few days I am going to have to do the same! You KNOW that it is going to start to go through the roof after this whole mess is over! I am thinking if they get back to cruising by April 15th then the stock will rebound, but I am no expert if you read some of my other posts!! LOL Quote Link to comment Share on other sites More sharing options...
FManke Posted March 18, 2020 Report Share Posted March 18, 2020 16 hours ago, bhageerah said: My GOD I can not believe how cheap it is now ........after watching it for a few days I am going to have to do the same! You KNOW that it is going to start to go through the roof after this whole mess is over! It's only going to continue to drop until they start cruising again. JMHO Quote Link to comment Share on other sites More sharing options...
ehw51 Posted March 18, 2020 Report Share Posted March 18, 2020 Everybody needs to relax, this is NOT going to last forever. Plan your cruises, if they cancel, plan another one. This will pass. Hopefully they will have some tremendous deals coming. Quote Link to comment Share on other sites More sharing options...
Lehigh98 Posted March 18, 2020 Report Share Posted March 18, 2020 I just requested the full refund for our 4/6 cruise instead of the 125% credit. The possibility of bankruptcy and defaulting on the credits is more of a concern to me than the value of the extra 25%. I know most people here are saying, "no big deal, they'll be fine, buy stock now" but I realize that this is a website and message board by and for Royal Caribbean fans who have a vested interest in the outcome that probably colors their perception. Better safe than sorry for us but I hope they bounce back and it works out for all that were impacted. Boltswin 1 Quote Link to comment Share on other sites More sharing options...
Eaglelover Posted March 18, 2020 Report Share Posted March 18, 2020 On 3/17/2020 at 9:37 AM, JimnKathy said: I just bought some RCL stock at $28 a share...Coronavirus is just a short-term blip creating a terrific price point for long-term investors to build a position. I bought a bit higher, but and have lost some $ but I bought some air stock after 911 and did OK. My lesson learned is that I waited too long back then after the rebound and lost some profit in the long term. I have a fair amount of confidence in RCL because of both their history and their clientele.... JimnKathy 1 Quote Link to comment Share on other sites More sharing options...
chrisb732 Posted March 18, 2020 Report Share Posted March 18, 2020 @coneyraven @ChessE4 it’s at $22.33. Kata and Eaglelover 2 Quote Link to comment Share on other sites More sharing options...
fonemanbob Posted March 19, 2020 Report Share Posted March 19, 2020 NOTHING AMERICAN about any cruise lines. Foreign ships, foreign workers. NO bailout seen for them. All those new ships in China sitting by the dock of the bay. No cure for the common cold or other diseases. But COVID 19. WOW look at all the hoops being jumped thru to cure this. Quote Link to comment Share on other sites More sharing options...
twangster Posted March 19, 2020 Report Share Posted March 19, 2020 43 minutes ago, fonemanbob said: WOW look at all the hoops being jumped thru to cure this. Cure? Current hoops and lack of bottom cleaning material is just about it spreading. A cure is a different trillion discussion for another day. joshgates 1 Quote Link to comment Share on other sites More sharing options...
Matt Posted March 19, 2020 Report Share Posted March 19, 2020 11 hours ago, fonemanbob said: NOTHING AMERICAN about any cruise lines. Foreign ships, foreign workers. Besides the fact cruise lines have headquarters in the United States, contributes $53 billion to the US Economy, or employs tens of thousands of employees on land and at sea? Yes, their ships are foreign flagged due to antiquated protectionist US laws based in the age of sailing. So the cruise lines adapt, just like GM builds a manufacturing plant in Mexico. It makes better business sense. I'm not saying the cruise industry deserves a bailout or not, but to state the cruise industry isn't American, or doesn't help the overall economy is just not true. JimnKathy, Christine 67, RCIfan1912 and 3 others 3 3 Quote Link to comment Share on other sites More sharing options...
RCIfan1912 Posted March 19, 2020 Report Share Posted March 19, 2020 The cruise industry is going to get a bailout in some form. The administration which again I am NO fan of has been talking about it. Airlines are way more irresponsible and they are certain to get a bailout. Everyone see the report that airlines have spent 96% of free cash they have made has gone to stock buy backs instead of saving for a rainy/virus day like this. Boeing which is a company I love has been extremely irresponsible over the last decade is going to get a bailout. They have been so hellbent on breaking their unions that they designed an unsafe aircraft that is costing them billions of dollars and their reputation. They will get a bailout. Quote Link to comment Share on other sites More sharing options...
Morganno Posted March 19, 2020 Report Share Posted March 19, 2020 Possibly not bankrupt but administration then takeover and FCC wiped thus they just keep everyone's cash and say sorry take it up with the creditors... Quote Link to comment Share on other sites More sharing options...
WAAAYTOOO Posted April 23, 2020 Report Share Posted April 23, 2020 New article from Bloomberg about more RCI funding https://www.bloomberg.com/news/articles/2020-04-23/royal-caribbean-in-talks-for-more-financing-to-ride-out-shutdown?sref=DWzi38c2 Ogilthorpe, Neesa, Kata and 1 other 4 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.