Villa Vie Odyssey Cruise Ship Faces Financial Turmoil

Residents of the Villa Vie Odyssey cruise ship, currently docked in Cambodia, have been informed that the ship is now under the control of its lender. This information was shared in a message obtained by CBS News. The ship is expected to be moved to Singapore, where it might be auctioned off.

Company leadership, however, remains hopeful about regaining control of the ship. According to Mike Petterson, the company’s founder and executive chairman, if they find an operational partner, there might be a chance to restructure within 30 to 90 days.

Passengers had limited time over the weekend to remove their belongings before the lender took over the ship’s operational duties. These responsibilities include paying for the crew, fuel, and managing the vessel’s operations. Petterson noted they are exploring different options to keep the ship operational, with the lender open to working on a funded plan.

“They have now the responsibility to pay the crew, fuel and the operations of the vessel and safekeeping of the vessel,” Petterson said.

Some passengers expressed concerns that the company’s optimistic outlook could lead to unrealistic expectations among residents. A previous attempt by residents to buy the ship failed due to a lack of funding, despite receiving pledges from 169 residents willing to contribute more money.

An internal communication reviewed by CBS News indicated the ship had been in financial distress for at least three months. Additional documents show company efforts to secure more funding from residents.

Joel Greiff, a resident from Naples, Florida, invested $350,000 in a cabin but spent only 26 days aboard. After moving onto the ship in October, Greiff became aware of the company’s financial struggles and was asked to provide more money to keep the ship running. Now residing in Kompat, Cambodia, Greiff has come to terms with possibly losing his investment.

The fate of the Odyssey remains uncertain as Residential Cruise Holdings, Villa Vie’s parent company, was previously in the process of acquiring another ship and working on residential cruise projects. Petterson emphasized their focus on the Odyssey, noting that Villa Vie is capitalized by the residents, making them stakeholders.

The message to residents discussed the potential cost of a Chapter 11 bankruptcy for Villa Vie, estimated at $3 million for the first 60 days. The proposed plan involves sustaining operations through DIP financing and resident collections. Petterson stressed the potential to strengthen the operating model with new capital and experienced operators.

“A structured transition with new capital and experienced operators can address the challenges and create a path forward,” the message read.