Cruise operator Hornblower has filed for bankruptcy, saying its overnight cruise business hasn’t rebounded from the COVID-19 pandemic, WSJ Pro Bankruptcy reported. Private-equity firm Strategic Value Partners, an existing Hornblower creditor, has agreed to acquire majority ownership of the business in a proposed debt-for-equity swap that is part of a larger restructuring agreement that requires approval from the U.S. Bankruptcy Court in Houston. SVP will also “provide a significant equity investment in the business,” Hornblower said in a statement. Private-equity firm Crestview Partners, which has been majority owner of the company, will keep a minority interest. SVP and Crestview also will provide $121 million in new-money financing. SVP will get four seats on a new five-person board, with Crestview getting the remaining one. Hornblower said the chapter 11 is expected to help cut the company’s debt load by $720 million. The company enters bankruptcy with assets of up to $1 billion, and liabilities of roughly $1.2 billion. Its debt load rose from $630 million in 2019 as the business tried to maintain liquidity during the pandemic.
