December 01, 2001
Meetings & Conventions: Incentive News

Cruise Line Files for Chapter 11 Protection

A merican Classic Voyages, the New Orleans-based U.S.-flag cruise operator, filed for Chapter 11 bankruptcy protection in Wilmington, Del., in late October. A statement posted on the firm’s Web page said, “We believe this process will allow us to rebuild our business in the aftermath of the Sept. 11 terrorist attacks...”

The firm’s two Hawaii-based ships, the 1,214-passenger Patriot and 798-passenger Independence, and four of five steamboats have ceased operations; the 75-year-old Delta Queen will continue with scheduled sailings.

Northrup Grumman’s Pascagoula, Miss.-based Ingalls shipyard suspended work on Project America, a program to build two 1,900-passenger ships for American Classic Voyages. The project was funded, in part, through government loan guarantees, which were rescinded after bankruptcy was declared.

The ships were to be the first U.S.-made cruise vessels in almost 50 years; completion had been scheduled for 2004 and 2005.

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