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CEO says plan is to file for bankruptcy after ending luxury never-ending cruise that left hundreds stranded
CBS News • • business
Key Points:
- Over 200 passengers, mainly Americans, are stranded in Cambodia after Villa Vie Residences, operator of the luxury cruise ship MV Odyssey, ran out of money due to a sharp increase in fuel costs caused by the war with Iran.
- Fuel prices surged from $700 per ton to between $2,000 and $3,000 per ton, dramatically increasing monthly fuel expenses from $400,000 to $2 million and forcing the company to suspend operations.
- The Odyssey, launched in October 2024 for a continuous around-the-world voyage with passengers purchasing permanent cabins, attempted to reduce costs by slowing its itinerary but still could not sustain the financial burden.
- Villa Vie Residences plans to file for Chapter 11 bankruptcy as it failed to secure additional funding, leaving passengers like retiree Benjamin Schatz suddenly homeless and uncertain about their futures.
- The company chose not to pass the increased fuel costs onto passengers, contributing to its financial collapse and the current crisis faced by those living aboard the ship.
