SEATTLE, April 21, 2011 /PRNewswire/ -- Ambassadors International, Inc. ("Ambassadors") announced today that at a hearing on April 19, 2011, the U.S. Bankruptcy Court for the District of Delaware approved the timeline for the proposed sale by Ambassadors of substantially all of its assets, including its principal operating unit, Windstar Cruises ("Windstar"). The sale is expected to close by May 23, 2011.
Hans Birkholz, CEO of Ambassadors and Windstar, said, "We are thrilled that the court approved our sale timeline, which allows the sale to move quickly as planned. With the sale timeline firmly in place, we look forward to positioning Windstar for long-term profitability and success under new ownership. This is great news for Windstar, and our guests and travel partners can rest assured that Windstar will be providing luxury travel experiences for many years to come."
As previously announced on April 1, 2011, Ambassadors has entered into an agreement with Whippoorwill Associates, Inc., as agent for its discretionary funds and accounts ("Whippoorwill") providing for the sale of its assets. Whippoorwill intends to maintain Windstar's business and operations and invest in Windstar's growth following the completion of the sale.
The court has already approved requests by Ambassadors to ensure that Windstar continues its normal operations and is sailing as scheduled as it moves forward through the sales process including: maintaining all of Windstar's programs and policies and honoring all Windstar fares and reservations, including charter contracts; providing commissions and payments to travel partners as usual; and paying employees and crewmembers in the usual manner and continuing their benefits without disruption. Ambassadors continues to expect that Windstar vendors and suppliers for goods and services received both before and during the reorganization process will be paid in connection with the sale.
Under the terms of the agreement, the sale to Whippoorwill is subject to court approval and other specified closing conditions. In compliance with Section 363 of the U.S. Bankruptcy Code, qualifying bidders will also have an opportunity to submit higher and better offers for evaluation through a court-supervised competitive bidding process. A hearing to consider the sale has been scheduled for May 18, 2011.
About Ambassadors International, Inc.
Ambassadors International, Inc. is primarily a cruise company with headquarters in Seattle, Washington. The Company operates Windstar Cruises, a three-ship fleet of luxury yachts that explore the hidden harbors and secluded coves of the world's most sought-after 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. In this press release, any reference to "Company," "Ambassadors," "management," "we," "us" and "our" refers to Ambassadors International, Inc. and its management team.
This press release contains forward-looking statements that are based on our current expectations and assumptions. These forward looking statements entail various risks and uncertainties that could cause actual results to differ materially from those suggested in our forward-looking statements. We believe that such risks and uncertainties include, among others, our ability to consummate the sale of our assets; our ability to obtain financing at reasonable rates; the need to obtain Bankruptcy Court approval for certain actions; the costs and other adverse effects of Chapter 11 proceedings; the risk that the bankruptcy filing and the related cases disrupt the Company's plans and operations; competitive practices and pricing in the cruise industry; our relationships with our employees; our ability to effectively and efficiently operate our cruise business; customer cancellation rates; marketing expenses; extreme weather conditions; the impact of new laws and regulations affecting our business; negative incidents involving cruise ships, including those involving the health and safety of passengers; cruise ship maintenance problems; reduced consumer demand for vacations and cruise vacations; changes in fuel, food, payroll, insurance and security costs; changes in relationships with certain travel providers; changes in vacation industry capacity; the Company's cost of capital and the ability of the Company to obtain capital; our ability to continue to operate as a going concern; our ability to effectively and efficiently operate our cruise business; other economic factors and other considerations affecting the travel industry; and other factors discussed more specifically in our filings with the Securities and exchange Commission. We are providing this information as of the date of this release and do not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.
SOURCE Ambassadors International, Inc.