SEATTLE, April 6, 2011 /PRNewswire/ -- Ambassadors
International, Inc. (NASDAQ: AMIE) ("Ambassadors") today announced
that Windstar Cruises' ("Windstar") luxury yachts are sailing as
scheduled and all Windstar fares and reservations, including
charter contracts, are being honored. At a hearing April 5, 2011, the U.S. Bankruptcy Court for the
District of Delaware granted permission for Windstar and
Ambassadors, among other things, to:
- Maintain all of Windstar's customer programs and policies and
honor all Windstar fares and reservations, including charter
contracts;
- Provide commissions and payments to travel partners as usual;
and
- Pay employees and crewmembers in the usual manner and to
continue their benefits without disruption.
The approval of these requests by Ambassadors helps ensure that
Windstar will continue normal operations as it moves forward
through the previously announced process of selling Windstar and
substantially all of Ambassadors' other assets. Ambassadors
continues to expect that all Windstar vendors and suppliers for
goods and services received both before and during the
reorganization process will be paid in connection with the
sale.
The Court also granted interim approval of the company's
debtor-in-possession financing (DIP) facility. The court's
approval authorizes Ambassadors and Windstar to access $5 million of new working capital financing on an
interim basis, which can be used to help support Ambassadors' and
Windstar's continuing operations and will provide liquidity during
the sale process. A hearing for final approval of the DIP
financing facility and access to the full $10 million of new financing thereunder has been
scheduled for April 26, 2011.
Hans Birkholz, CEO of Ambassadors
and Windstar, said, "We are on track with our sale process.
Windstar is maintaining normal business operations and our
customers and guests remain a top priority as we move through this
process to position Windstar for long-term profitability and
success under new ownership."
On April 1, 2011, Ambassadors
announced an agreement to sell substantially all of its assets,
including Windstar, to Whippoorwill Associates, Inc., as agent for
its discretionary funds and accounts ("Whippoorwill").
Whippoorwill intends to maintain Windstar's business and
operations and invest in Windstar's growth following completion of
the anticipated sale. In addition, the financing facility that
received interim Court approval is being provided to Windstar and
Ambassadors by Whippoorwill.
Ambassadors also announced that it received notification from
the Nasdaq Stock Market on April 4,
2011, indicating that the staff of the Nasdaq Stock Market
has determined, in accordance with Nasdaq Listing Rules 5101,
5110(b) and IM-5101-1, that Ambassadors' common stock will be
delisted from the Nasdaq Stock Market in light of, among other
things, Ambassadors' announcement that it filed a voluntary
petition for relief under Chapter 11 of the United States
Bankruptcy Code. The notification states that Nasdaq trading in
Ambassadors' common stock will be suspended at the opening of
business on April 13, 2011, and
Nasdaq will request that the Securities and Exchange Commission
remove Ambassadors' securities from listing and registration on the
Nasdaq Stock Market, unless Ambassadors requests an appeal of the
delisting decision. Ambassadors does not intend to appeal
Nasdaq's delisting decision, and therefore it is expected that the
common stock will be delisted.
Additional information about the restructuring and the sale
process is available at www.ambassadors.com. Claims
information is available at www.phaseeleven.com/ambassadors.
General information for Windstar guests is available at (800)
258-7245.
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.
Forward-Looking Statements
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.
Contacts:
Ambassadors International Public Relations
(206) 733-2705
Email: pr@ambassadors.com
Kimberly Kriger/James David
Kekst and Company
(212) 521-4800
SOURCE Ambassadors International, Inc.