Villa Vie Odyssey, the residential cruise ship stranded in Cambodia, has been taken over by its lender, leaving residents uncertain about the future of their long-term voyages.
According to a message sent to residents, the lender has assumed control of the vessel. The ship is expected to be moved from Cambodia to Singapore, where it could eventually be auctioned off.
The development follows months of uncertainty for passengers who signed up to live aboard the ship as it traveled around the world.
Residents were reportedly given only the weekend to remove their belongings before the vessel became inaccessible to them.
Mike Petterson, Villa Vie Cruises founder and executive chairman, said the lender has also assumed responsibility for the ship’s operating expenses, including crew wages, fuel, vessel operations and safekeeping.
In a conversation with CBS News, Mike Petterson added that the company remains hopeful of regaining control through a restructuring agreement and a partnership with another operator.
“This is a 30- to 90-day process, and, during that process, we have time to get a restructure done.”
He also stressed that negotiations with the lender remain open, provided the company presents a funded plan.
“They have now the responsibility to pay the crew, fuel, and the operations of the vessel and safekeeping of the vessel. They would be willing to work with a funded plan — they’re not out of negotiations — it’s not like you get your car repossessed and you can’t get it back.”
“False hope”: Residents frustrated at company promising message
However, some residents have expressed frustration with the company’s optimistic messaging, which said:
“The lender has taken possession of the ship, but that does not mean the Odyssey’s future has been decided. No sale has been scheduled.”
They worried it could give passengers “false hope” about the possibility of the cruise ship returning to service. It added:
“We believe there is time to bring forward a viable plan and are working to do that.”
In addition to this, the message conveyed to the residents also mentioned that if the Villa Vie went for Chapter 11 Bankruptcy, the ship would lose $3 million within 60 days after it started.
“The plan we are pursuing is to support those operations through DIP financing and resident maintenance collections. The debt and legal issues are serious, but they do not erase the value of the ship, the resident community or the opportunity to build a stronger operating model.”
It further said:
“A structured transition with new capital and experienced operators can address the challenges and create a path forward.”
For residents who planned to make Villa Vie Odyssey their permanent home while traveling between destinations, the lender’s takeover raises fresh questions about their living arrangements and the future of the voyage.
The vessel’s potential move to Singapore and possible auction will be key developments to watch as negotiations continue.
