Ambassadors International Inc. has announced the U.S. Bankruptcy Court has approved the sale of substantially all of Ambassadors’ assets, including its principal operating unit, Windstar Cruises, to TAC Cruise LLC, an affiliate of Xanterra Holding Corporation. The sale is expected to close next week.
All of Windstar’s luxury yachts are still sailing as scheduled, and the handover to the new owners is not expected to interrupt future bookings.
During a court-supervised competitive bidding process in compliance with Section 363 of the U.S. Bankruptcy Code, TAC Cruise LLC submitted a winning bid of $39 million in cash.
Windstar will now be operated as a wholly-owned subsidiary of Xanterra Holding Corporation of Greenwood Village, CO. Xanterra Holding Corporation and its affiliates have operated in the hospitality and leisure industry for more than 100 years.
“Windstar emerged as a tremendous long-term opportunity due to the line’s exceptional product, loyal following and high level of guest satisfaction in the luxury travel market,” said Andrew N. Todd, CEO of Xanterra Holding Corporation. “Xanterra intends to maintain Windstar’s business and operations and to invest in Windstar’s growth following the close of the sale.”
Hans Birkholz, CEO of Ambassadors and Windstar, said: “Windstar is very pleased with the successful outcome of this sale process and expects to complete it by early next week. Windstar is excited to have its new owner join in building Windstar’s world class brand. Windstar will be well-positioned for long-term profitability and success under new ownership and we will continue to provide exceptional service and extraordinary luxury travel experiences for our guests.”
However, it is expected that Ambassadors’ stockholders and holders of Ambassadors’ convertible notes will not receive any distribution following the sale and these securities will likely have little, if any, value following Ambassadors’ Chapter 11 proceeding.
For more info, look up www.windstarcruises.com.
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