Cruises - Windstar Cruises enters Chapter 11, with a buyer...

The important stuff, from the big print in the United Business Media PR Newswire article, parts quoted below, emphasis PRNewswire's:

Ambassadors International Enters Into Agreement to Sell Windstar Business and Operations to Private Investment Firm

Whippoorwill Commits $10 Million in New Financing to Support Ongoing Operations during Sale Process

Windstar Operations Continuing as Usual; Honoring All Fares and Reservations and Maintaining High Customer Service Levels

Sale to Be Implemented Through Chapter 11 Process


SEATTLE, April 1, 2011 /PRNewswire/ -- Ambassadors International

"SEATTLE, April 1, 2011 /PRNewswire/ -- Ambassadors International, Inc. (NASDAQ: AMIE) ("Ambassadors") today announced that it has entered into an agreement with Whippoorwill Associates, Inc., as agent for its discretionary funds and accounts ("Whippoorwill"). Under the terms of the agreement, Ambassadors proposes to sell substantially all of its assets, including its principal operating unit, Windstar Cruises ("Windstar"), through a court-supervised sale process. In accordance with the terms of the agreement with Whippoorwill, and to facilitate the sale transaction, Ambassadors and its U.S. subsidiaries today voluntarily filed petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware."

"Ambassadors and Windstar intend to continue normal business operations during the sale process, which is proposed to be completed in approximately 45 days. Windstar also plans, subject to court approval, to continue to:
Operate all Windstar cruises as scheduled;

Maintain all of Windstar's customer programs and policies;
Honor all Windstar fares and reservations, including charter contracts;
Provide commissions and payments to its travel partners as usual and employee wages and benefits without interruption; and
Pay all Windstar vendors and suppliers for goods and services received both before and during the reorganization process in connection with the sale.

Link (http://tinyurl.com/3b655ge)to full article.

1) Windstar says they will continue to operate as scheduled (which is nice, as we are scheduled to depart Barcelona to Rome on MSY Wind Surf Sunday, April 24). We can hope, but be aware of all the caveats;

2) There are a lot of caveats listed under the Forward-Looking Statements at the end of the article.

Ambassadors International website: www.ambassadors.com

Windstar Cruises website: www.windstarcruises.com

General Ch 11 information from PhaseE1even consultants:
http://www.phaseeleven.com/ambassadors

Court Dockets (PDF form) for these actions: http://proworks.11llc.com/ambassadors/_layouts/PhaseEleven/Internet/Dockets.aspx

Further information on Ch. 11 Delaware cases: http://www.deb.uscourts.gov

http://t2.gstatic.com/images?q=tbn:ANd9GcQgcaqwxHYgEPdWPFhzjFm3GG2sKX3m0 X-HBNvGjZ1zdqJjTnwO1A

XANTERRA PARKS & RESORTS COMPLETES PURCHASE OF WINDSTAR CRUISES

DENVER, May 27, 2011 - Xanterra Parks & Resorts completed the purchase of Windstar Cruises on Wednesday, May 25, after the sale of the assets of Ambassadors International, Inc. was approved by the U.S. Bankruptcy Court for the District of Delaware on May 19, 2011. Windstar was Ambassadors' principal operating unit.
Windstar Cruises, with headquarters based in Seattle, Wash., will sail all published 2011 and 2012 voyages, maintain its customer programs and policies and honor Windstar fares and reservations, including charter contracts.

"The first order of business for Windstar Cruises is that it is full sail ahead," said Andrew N. Todd, President & CEO of Xanterra Parks & Resorts. "Going forward, we intend to maintain Windstar's business and operations and invest in Windstar's growth for the long term. We are very excited to have Windstar Cruises become part of Xanterra's 135-year legacy in hospitality."

Windstar Cruises operates a three-ship fleet of luxury yachts that explores the hidden harbors and secluded coves of some of the world's most sought-after destinations. These luxurious and intimate ships cruise to nearly 50 nations, calling at 100 ports throughout Europe, the Caribbean and the Americas. The company sails two ships that carry just 148 guests each and a third ship that carries 312 guests.

"Now that the sale of Windstar Cruises has closed successfully, Windstar will be financially stronger and well-positioned for long-term profitability and success under new ownership," said Hans Birkholz, CEO of Windstar. "Windstar's 2012 collection of luxury voyages was just announced, and we will continue to provide our guests exceptional luxury travel experiences and the highest level of service. We will also continue to strive to exceed our guests' expectations aboard our luxury yachts for many years to come."

For the fifth consecutive year, Windstar Cruises was named the best small/mid-size cruise line by the readers of Celebrated Living, American Airlines' publication for first-class passengers. The 2011 Platinum List is an annual reader's choice guide endorsing the top hotels, golf courses, spas and cruise lines in the world.

Xanterra traces its history in the hospitality industry back to 1876 with the Fred Harvey Company, known throughout the West for its pioneering efforts to develop and operate first-class hotels and restaurants along the route of the Santa Fe Railroad, including the world-famous El Tovar on the South Rim of Grand Canyon National Park. Harvey devised a system of alerting his restaurant kitchen staff of the imminent arrival of train passengers via the telegraph wire, thus allowing his dining room hotel staffs to anticipate the needs of countless travelers prior to their arrival. His innovations and expertise led to first-class and luxury travel service standards that were ahead of their time.

In 1968, the Fred Harvey Company was purchased by Xanterra Parks & Resorts, then called Amfac Parks & Resorts. Amfac later acquired TW Recreational Services in 1995, and the company relocated from Flagstaff, Ariz. to the Denver area. In 2002 the company changed its name to Xanterra Parks & Resorts. In March 2007 Xanterra acquired the Williams, Ariz.- based Grand Canyon Railway, and in 2010 it purchased the luxurious Kingsmill Resort in Williamsburg, Va. The company also operates the exclusive Furnace Creek Resort in Death Valley National Park as well as upscale, world-renowned lodges such as El Tovar, the Lake Yellowstone Hotel and Old Faithful Inn in Yellowstone National Park and Crater Lake Lodge in Crater Lake National Park.

About Windstar Cruises
Windstar Cruises operates three sailing yachts known for their pampering without pretense and their ability to visit the hidden harbors and secluded coves of the world's most treasured destinations. Carrying just 148 to 312 guests, the luxurious ships of Windstar cruise to nearly 50 nations, calling at 100 ports throughout Europe, the Caribbean and the Americas. For more information including rates and itineraries contact a professional travel agent or call Windstar at 1-800-258-7245. Visit Windstar Cruises online at www.windstarcruises.com.

About Xanterra Parks & Resorts
Xanterra Parks & Resorts® (consisting of several affiliated Xanterra entities) operates lodges, restaurants, tours and activities at national parks and state parks and resorts. Xanterra Parks & Resorts is the country's largest park concessioner. Xanterra Parks & Resorts has operations in the following locations: Grand Canyon, Yellowstone, Zion, Crater Lake, Rocky Mountain and Petrified Forest National Parks, Mount Rushmore National Memorial, Furnace Creek Resort in Death Valley National Park, Kingsmill Resort in Williamsburg, Va. and eight Ohio State Park Lodges as well as the Geneva Marina at Ohio's Geneva State Park. Xanterra Parks & Resorts also operates Grand Canyon Railway in Williams, Ariz.

Xanterra Parks & Resorts has been committed to the preservation and protection of the environment for many years. Through its environmental program, "Ecologix," Xanterra Parks & Resorts has been recognized repeatedly for environmental leadership in the hospitality industry and is the recipient of many honors, including major awards from the U.S. Department of the Interior, National Park Service, Environmental Protection Agency, Travel Industry Association of America, American Hotel and Lodging Association, National Parks Conservation Association, Conde Nast Traveler, National Geographic Traveler, Colorado Department of Public Health, State of Arizona, Arizona Department of Environmental Quality and Utah Department of Environmental Quality.

For more information about Xanterra Parks & Resorts, links to individual properties and reservations numbers, visit www.xanterra.com.

Xanterra Parks & Resorts
6312 S. Fiddlers Green Circle
Suite 600 North
Greenwood Village, CO 80111

Windstar Cruises
2101 4th Ave.
Suite 210
Seattle, WA 98121

Xanterra Media contact:
Mesereau Public Relations
1-720-842-5271
mona_mesereau@msn.com
tom_mesereau@msn.com

Windstar Cruises Media Contact:
1-206-733-2970
Vanessa.bloy@windstarcruises.com

E-mail announcing acquisition received today from Xanterra / Windstar Cruises, it its entirety.

Most travel insurers will still not cover them; I'm still a little leery of this new ownership myself.

Well, we're booked in August, but the cold hard fact is that their ships are nearing the end of their functional lives and I'm told replacements are cost prohibitive. End of an era at some pint. The only question is when.

We are booked again for next year, and got insurance before the bankruptcy announcement, so are covered. However, since you can't get coverage for financial default now, I'd be hesitant to book another.

milepig, I strongly beg to differ. Xanterra is an extremely well known long-time travel provider (they operate lots of our national parks lodging and facilities), and they have now announced a huge $18 million refurbishment of the three ships - beginning this Fall with Wind Surf, extending to Wind Star and Wind Spirit before they begin their Mediterranean voyages in 2012, and finishing with the last of refurbishments next Fall with Wind Surf. The refurb will cover everything from interior spaces to engineering and instrumentation.

I've had it from other sources as well, but check out today's announcement here (http://blog.windstarcruises.com/2011/09/windstar-launches-18-million-fleet-refurbishment-plan/).

http://blog.windstarcruises.com/wp-content/uploads/2011/09/110919StateroomREV21-1024x576.jpgRefurbished cabin


http://blog.windstarcruises.com/wp-content/uploads/2011/09/110915_SURFSuite02_Rev-1024x576.jpg
Refurbished Wind Surf suite


Xanterra are really putting their money where their mouth is, and all that remains is for them to clean house with the old, stodgy management that managed to bring some disrepute and poor service to the fleet whilst Ambassadors was mining Windstar for profits (they dumped the marketing department immediately when they purchased).

Yes, that is an opinionated thing to say, but... I know a number of people who work for Windstar and hear this from the inside, and am about to take my 14th Windstar cruise next month. My cruising experience goes back to the Ile de France and original Queen Elizabeth with many cruises since. I am (finally) excited with the new plans for Windstar.

6rugrats, I think you will be quite pleased with the refurbished, now classy again, Windstar cruises!

6rugrats, I think you will be quite pleased with the refurbished, now classy again, Windstar cruises!
Yes, I received an email from them yesterday with this information. I have been sailing on Windstar since 1988, and remember the original cabin decor.

However, after have my cruise cancelled on Windstar last winter because the ship was chartered, and then having my rebooking cancelled because of this refurbishment, I am not ready for a third disappointment and hassle. So, don't know if I will ever see this new decor.

Yes, I received an email from them yesterday with this information. I have been sailing on Windstar since 1988, and remember the original cabin decor.

However, after have my cruise cancelled on Windstar last winter because the ship was chartered, and then having my rebooking cancelled because of this refurbishment, I am not ready for a third disappointment and hassle. So, don't know if I will ever see this new decor.

Frankly can't say as I blame you.

In a positive note, they are back on the covered suppliers list for financial default for most travel insurance companies.

Essentially Windstar are making a few cosmetic changes, but these ships are so old and dilapidated, I truly wonder how they manage to scrape through surveys. Isn't it time they embark on a newbuild program.
Xantarra bought them for peanuts, I do wonder what the longterm intentions are. The ships can't have many more years in them.

Not really accurate, IMO. New autopilot systems have been installed already. The electrical and pipe systems are part of the refit, or it would be cosmetic updates - from what I understand, Xanterra has intentions to operate for at least ten more years. (Cosmetic refits are generally largely accomplished at sea during no-passenger repositioning voyages - these ships have serious dates with drydocks in Setubal, Portugal, iirc, as well as the sea work.)

Xanterra intends to make some money with the ships by refurbishing, repositioning the brand and making a number of systemic changes to Windstar - not merely continuing on with the Ambassador mining program - and Xanterra is closely held (controlled by Phillip Anschutz), so they don't have to answer to shareholders only concerned with the quarter's report, nor heavily subsidized (as Club Méditerranée is with its French tax-supported ownership scheme for Club Med II).

As to a new build programme, I suspect the cost would be exorbitant and ships of a similar type with a capacity of 148 passengers will not be built again.

Essentially Windstar are making a few cosmetic changes, but these ships are so old and dilapidated, I truly wonder how they manage to scrape through surveys. Isn't it time they embark on a newbuild program.

Xantarra bought them for peanuts, I do wonder what the longterm intentions are. The ships can't have many more years in them.

I had a wander around the Surf earlier this year in Barbados when seeing a friend onboard. Whilst the cosmetic changes will be welcomed, the ships are very tired and $18m is far far less then is really necessary to update these ships. If thats split evenly at $6m each it will be little more then cosmetic changes.
Areas that the guests don't see (such as the machinary spaces) are really in dire need of some updating. They are struggling to employ officers, my friends and I wouldn't even consider working their, a colleague of mine left last year as he just felt those ships were a lot of work to keep going.

How the heck old are these ships anyway??? Any more than 20 years? I thought ships built within that time frame have a good 40 years of life to them.

How the heck old are these ships anyway??? Any more than 20 years? I thought ships built within that time frame have a good 40 years of life to them.

The realistic lifespan that they aim for is 25 years when building cruise ships, and often the larger brands won't keep a ship for that long.

Once you start to reach 20 years, these ships become very difficult to maintain. Every 5 years from this point onwards the surveys become more indepth and involve pulling major parts of the ship apart. I've worked on old cruise ships, and personally hated it, and regardless of how much money you throw at it they are seriously deteriorating. They can scrape through surveys for more years, and then eventually sold to greek companies which stop operating them to places like the USA, otherwise they'd probably be detained.

With the Windstar ships, they are reaching that point rapidly. And no one is going to want to waste too much money on them.