NASSAU, Bahamas — Royal Caribbean International and Carnival Cruise Line could delay their multimillion-dollar Grand Bahama projects for two years or more due to the financial hardship cruise lines have faced during the novel coronavirus (COVID-19) pandemic, Chairman of Global Ports Holding (GPH) Mehmet Kutman told Guardian Business, the Nassau Guardian reported on May 11.
Kutman made his grim revelation based on some of the United States’ Securities and Exchange Commission (SEC) filings of both Carnival and Royal Caribbean, which reveal that the billions in debt recently raised by the cruise lines in response to their COVID-19 shutdown will be used to fund their operations and repay debt, which could mean capital projects like those on Grand Bahama could be put on the back burner.
“For Grand Bahama…I don’t see anything happening there for a minimum of 24 months,” said Kutman. “The SEC filings are very clear on that.”
A Royal Caribbean filing states: “There shall be a presumption that any indebtedness incurred by the borrower between April 1, 2020 and December 31, 2021 shall be for the purpose of providing crisis and/or recovery-related funding, unless the intended use of proceeds from such indebtedness is specifically identified to be used for an alternative purpose.”
GPH is the parent company of Nassau Cruise Port Limited, which has begun the refurbishment of Nassau’s cruise port, something Andy Stuart, former president and chief operating officer of Norwegian Cruise Line, said will be one of the main catalysts driving Nassau’s primary role as a cruise industry stimulator post-COVID-19. The port is scheduled to be completed in 2022. See full story in Nassau Guardian at https://thenassauguardian.com/2020/05/11/cruise-lines-might-delay-gb-projects-notes-global-ports-holding-chairman/
