Ambassadors International has filed for Chapter 11 bankruptcy protection in the United States as it seeks to reorganise its finances.
Simultaneously the company had signed with private investment firm Whippoorwill Associates to begin the sale of its assets – including Windstar Cruises.
Windstar is based in Seattle and operates three up-market ships.
All cruises will operate as normal during the sale, which is expected to be completed within the next 45 days.
Whippoorwill also stated it would maintain customer programs and policies; honour fares, charters and reservations; provide commissions and payments to travel partners; and pay Windstar vendors and suppliers.
These planned actions all are subject to court approval, a statement noted.
Whippoorwill has agreed to provide $10 million in new financing under a debtor-in-possession credit facility, which can be used to help support Ambassadors’ and Windstar’s operations during the sale process.
With its current cash availability and this additional funding, Ambassadors said it believes that it has ample liquidity to meet its obligations to Windstar’s customers, suppliers and employees without interruption.
In addition to Windstar operations, and as part of the sale, Whippoorwill will acquire certain assets of Ambassadors’ former Majestic America Line operations, which were discontinued in 2008.
Shelley Greenhaus, president of Whippoorwill, said: “In its short tenure, the existing management team has made significant strides in transforming Windstar’s operations.
“The various initiatives implemented in the past year have started to turn the business around.”