San Jose Bankruptcy Attorney comments on the Chapter 11 bankruptcy filing of the Palm Beach Princess casino ship.
San Jose Bankruptcy Attorney comments on the Chapter 11 bankruptcy filing of the Palm Beach Princess casino ship.
The Palm Beach Princess has floated back into bankruptcy court, just one month after being purchased out of bankruptcy court. Ocean Development I LLC, which purchased the company in bankruptcy court in November, has filed for voluntary Chapter 11 bankruptcy protection as it seeks to reorganize its financing with an unnamed lender.
The Palm Beach Princess carries 175,000 passengers per year on its twice-daily cruises to nowhere. The company buses passengers in from hotels along the South Florida coast. The company’s bottom line has been hurt by Coast Guard restrictions on the cruises imposed after the main engine died in September. The ship has been running on auxiliary engines, but the Coast Guard has required that the ship only sail in optimum conditions and then with an expensive escort of two tugboats. Because of these restrictions, the ship has missed more than a dozen sailing days, which has cut into revenues and forced the company to seek Chapter 11 bankruptcy protection.
Among the company’s creditors is the Port of Palm Beach, which is owed more than $250,000 in back rent. Food service company Sysco has filed suit for the more than $50,000 it claims it is owed by Ocean Development. Employees claim that paychecks are sometimes slow in arriving and have bounced on occasion. Management is confident that the Chapter 11 restructuring will allow it to establish a firm financial footing.
Palm Beach Princess casino ship files for bankruptcy reorganization, The Palm Beach Post, December 25, 2009<
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