Lender Takes Control of Stranded Villa Vie Odyssey Cruise Ship
Lender assumes control and operating costs of the Villa Vie Odyssey, stranded in Cambodia, as the company seeks a 30- to 90-day restructuring.
The story in focus
CBS News reports a lender has taken control of the Villa Vie Odyssey, a residential cruise ship stranded in Cambodia. Residents were told to remove belongings over a weekend. The ship is expected to move to Singapore, where it could face auction, while the company pursues a restructuring.
- A lender has taken control of the Villa Vie Odyssey, which remains stuck in Cambodia
- Residents had only a weekend to remove belongings before losing ship access
- The ship will soon move to Cambodia to Singapore, where it could eventually be auctioned
- Founder Mike Petterson described a 30- to 90-day restructuring window to CBS News
- A resident bid to buy the ship failed after a lender denied funding, with pledges from 169 residents
Lender assumes vessel costs
A message to residents obtained by CBS News states the Villa Vie Odyssey is now under its lender's control. The lender has taken over operational costs, including crew pay, fuel and vessel operations and safekeeping, according to founder and executive chairman Mike Petterson.
The ship is expected to move from Cambodia to Singapore, where sources say it could eventually be auctioned. Residents were given only a weekend to remove all belongings before the vessel became inaccessible to them.
Restructuring window and resident concerns
Petterson told CBS News the process runs 30 to 90 days and provides time to complete a restructuring, adding the lender remains open to a funded plan. The resident message said no sale has been scheduled and the Odyssey's future is undecided.
Some passengers criticized the company's optimistic tone as false hope. An attempt by residents to buy the ship failed after a lender denied funding, despite pledges from 169 residents. Resident Joel Greiff, who paid $350,000 for a cabin and spent 26 days aboard, said he may never recover his investment.
Financial distress and options
Internal communications reviewed by CBS News indicated the ship was in financial distress for at least three months before reaching Cambodia. A Chapter 11 bankruptcy would cost the ship about $3 million for the first 60 days, according to the resident message.
Petterson said the company is owned by employees and residents and that its focus is entirely on the Odyssey.
How long does Villa Vie's founder say the restructuring process will take?
Mike Petterson told CBS News the process is expected to run 30 to 90 days, during which the company says it has time to complete a restructuring while the lender covers crew, fuel and vessel operations.
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