Cruise line placed into administration

Cruise line placed into administration
By admin


Classic International Cruises has been placed into voluntary administration, putting its forthcoming Australian season in severe doubt.

The development surrounds issues relating to the impounding of the Athena liner, which was operated by CIC.

The vessel was inpounded in France for unpaid bills which led CIC to seek another ship to carry out its Australian cruises.

But negotiations to charter a replacement – the 520-capacity Delphin – broke down forcing CIC managing director Grant Hunter to call in administrators.

Administrator Brad Tonks, from Lawler Partners, told Travel Today there was a possibility a deal could yet be reached with the owners of the Delphin, although he described such an outcome as “unlikely”.

But an urgent search will go on for a replacement, he said.

“There are a number of tasks we need to undertake but the key focus for is to search for a substitute vessel, which we will be doing with the CIC directors,” he said.

Tonks said it was too early to assess the likelihood of locating a replacement.

“There is no deadline but we are certainly conscious that time is of the essence," he said.

Athena was due to arrive in Australia on December 18 for its Australian season.

An earlier statement from Sydney-based Lawler Partners said a backup for Athena had been found by CIC, only for discussions to stall.

"CIC was notified on 30 October that a final agreement may not be reached because of delays prior to the scheduled departure of the cruise from Marseille, France on 12 November," the firm said. "Upon receiving this news the management of CIC Australia sought immediate advice in relation to CIC Australia's financial affairs and placed the company into Administration."

The statement went on: “Whilst future bookings have now been placed on hold, the administrators intend to continue the task of sourcing a suitable vessel for the 2012/13 cruises.”

Lawler said it will provide agents with regular updates.

“We encourage customers to contact their travel agents in relation to their future travel arrangements,” the firm said.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

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