Carnival cruise line is trying to get help without the government
Cruise line company Carnival has announced that it is seeking investments and credit. The company is aiming to secure US$6 billion in debt and funding.
Carnival has no options of getting any significant help from the authorities. The company is listed in London and New York, yet it is registered in Panama. That complicates its eligibility for the relief packages introduced by the US and UK.
The cruise line is one of the biggest in the industry and has been impacted severely by the coronavirus pandemic. It has US$1.8 billion of pending debt coming due this year. Additional US$1.92 billion is coming due in 2021. Carnival also has strong commitments to pay over US$8,7 billion for its ships.
The operator also has over 6 000 people at sea. One of its ships is in Zaandam, heavily impacted by the pandemic and the lockdown. Finally, Carnival's stock has lost over 75% of its value.
Some experts believe that Carnival’s case might serve as an example of the private sector's ability to handle the pandemic’s impact without the government’s support.