American Classic Voyages -
News for Booked Passengers
(American Hawaii, Delta Queen Steamboat Company, Delta Queen Coastal Voyages, and United States Lines)
From American Classic Voyages:
Updated October 24, 2001
Dear Friends of AMCV,
On Friday, October 19, 2001, American Classic Voyages voluntarily filed petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. While this was a very difficult decision to make, we believe this process will allow us to rebuild our business in the aftermath of the September 11 terrorist attacks and continue our proud tradition as Americas cruise line.
Although the legendary Delta Queen steamboat will continue to cruise Americas Heartland, without interruption, we regretfully announce that following this weekend, we will cease all Hawaii cruises and Delta Queen riverboat cruises and coastal voyages. In the Spring of 2002, we intend to resume scheduled operations on the Mississippi Queen.
We would like to assure you that taking care of the passengers and employees who are aboard the ships is one of our very highest priorities. That is why we have made arrangements for each of our vessels to complete their original itineraries and return to their final scheduled destinations.
For more information, click here to access our press release. We understand that you may have additional questions regarding this announcement and what it might mean for you, and we encourage you to read the Frequently Asked Questions by clicking on the appropriate links below. Moving forward, we will make every effort to utilize this Web site to update you on significant developments as our reorganization proceeds.
Sincerely,
American Classic Voyages
FREQUENTLY ASKED QUESTIONS (FAQs)
GENERAL
DELTA QUEEN PASSENGERS
OTHER PASSENGERS
VENDORS
GENERAL
Is AMCV going out of business?
No, AMCV has filed for protection under Chapter 11 of the U.S. Bankruptcy Code. Without a doubt, our business will undergo significant changes as a result of this reorganization, but we are optimistic that this process will allow us to emerge a healthier company positioned for the future.
Why now? Is this yet another consequence of September 11?
The filing was a very difficult decision for AMCV. The aftermath of the terrorists acts and the war on terrorism had a dramatic effect on the companys financial health. Our bookings slowed dramatically, our cancellations increased and our cash liquidity declined. We believe this move to reorganize will maximize the value of AMCVs assets for all of our stakeholders.
Where are your ships now and what will happen to the passengers and employees on board?
As you know, the Delta Queen steamboat will continue cruising according to its regular schedule. As for the other vessels, taking care of the passengers and employees aboard the ships at the time of the filing is one of our top priorities. Thats why we have made logistical arrangements so that each of the vessels will complete the cruise currently under way. No one is or will be stranded on a boat or on shore in an unplanned destination.
How many jobs will be lost as a result of this?
Unfortunately, approximately 2,150 people will lose their jobs. We are extremely proud of the talented and dedicated workforce at AMCV and are very saddened that we will be unable to keep our cruising family together. About 30 shore-based employees and 80 shipboard positions will continue as part of the Delta Queen cruise operations.
What is going to happen to Project America, the cruise ships under construction in Pascagoula, Miss.?
American Classic Voyages is working with the Northrop Grumman Corporation and the U.S. Maritime Administration with the goal to continue construction on the 1,900 passenger Project America ships, the first U.S. cruise ships to be built in nearly 50 years.
Who is in charge of the company now?
The day-to-day operations during the transition period will be managed by a seasoned group of four management professionals: David Simmons, who will oversee the sales, marketing and hotel operations of Delta Queen; Tom Carman, who will oversee the marine operations area; Craig Keller who will oversee the human resource area and Nick Davison who will oversee the finance, IT and purchasing side of the business. These are individuals who made the Delta Queen brand successful in the past and are committed to rebuilding its value going forward. In addition, Jon Rusten, who heads AMCVs development company, will continue to oversee the companys new ship construction team.
Phil Calian, CEO, Jordan Allen, General Counsel and Randy Talcott, Vice President, Finance will remain in place to guide the company strategically; however, it is too early in the reorganization process to confirm the roles of the management team over the long term. Rod McLeod, President and Chief Operating Officer, will be leaving the company.
What does the future hold for American Classic Voyages?
We plan to return to the roots of our business with the Delta Queen while at the same time continuing to plan for construction and introduction of the new Project America ships in the Hawaii cruise market.
DELTA QUEEN PASSENGERS
I already have a cruise booked on the Delta Queen steamboat. What does this mean to me?
We are pleased to confirm your trip will take place as planned on the historic Delta Queen steamboat. Of course, in todays rapidly-changing travel environment, it is advisable for travelers to confirm all arrangements with your travel agents shortly before you depart.
In addition, keep in mind that any future bookings on the Delta Queen steamboat will be fully protected, as we will establish a cash escrow account from which passenger deposits will only be released when the sailing occurs.
How do I know my deposit is safe?
Since the Delta Queen steamboat will continue to operate, your deposit is safe.
Who should I talk to if I have additional questions?
We want to make sure that all of your questions are addressed just as quickly as possible. Please call your travel agent or send an e-mail to . You can also write to us at:
Delta Queen Steamboat Co.
Robin Street Wharf
1380 Port of New Orleans Place
New Orleans, Louisiana 70130-1890
OTHER PASSENGERS
What does this mean for the trip I booked on any of your vessels besides the Delta Queen steamboat?
Unfortunately, only the Delta Queen steamboat will continue to sail. If you have booked your cruise through a credit card or if you have purchased travel insurance, you should pursue these avenues as a means to obtain a refund for the cruise you will not be able to take.
What if I paid my deposit in cash?
No refunds are being issued at this time. To file a claim, you must file a Proof of Claim Form with the Clerk of the Court for the United States Bankruptcy Court for the District of Delaware. The address will be posted on the company's Web site, www.amcv.com, in the near future.
Who should I talk to if I have additional questions?
We want to make sure that all of your questions are addressed just as quickly as possible. Please call your travel agent or send an e-mail to . You can also write to us at:
American Classic Voyages
Robin Street Wharf
1380 Port of New Orleans Place
New Orleans, Louisiana 70130-1890
VENDORS
How can I get paid for products/services already provided to AMCV?
The Chapter 11 reorganization process necessitates that you pursue your claim with the court. To file a claim, you must file a Proof of Claim Form with the Clerk of the Court for the United States Bankruptcy Court for the District of Delaware. The address will be posted on the company's Web site, www.amcv.com, in the near future.
PRESS RELEASE: AMERICAN CLASSIC VOYAGES CO. FILES VOLUNTARY PETITION FOR CHAPTER 11 REORGANIZATION
MIAMI, October 19, 2001 - American Classic Voyages Inc., the largest U.S.-flag cruise company, today announced that it has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in Wilmington, Del.
The company will cease operations for its Hawaii vessels, the ms Patriot and the ss Independence, tomorrow at the completion of their current cruises. Four of the companys five Delta Queen vessels, including the American Queen, the Mississippi Queen, the Columbia Queen and the Cape May Light, also will cease operations at the completion of each vessels current cruise over the next three days. The Delta Queen steamboat, the companys National Historic Landmark flagship, will continue to operate its scheduled future voyages.
In addition, AMCV said it intends to work with Northrop Grumman Corporation and the U.S. Maritime Administration with the goal to maintain construction on the two 1,900-passenger Project America ships, the largest cruise ships to be built in America in nearly 50 years.
The tragic events of September 11 dealt a devastating blow to our business that has made it impossible to continue our full operations, said Phil Calian, CEO of American Classic Voyages. We will continue to operate on a much reduced scale to focus on our Mississippi River cruises, which have been the historic core of our company.
In August, the company had reported increasing per diems and occupancy on its Hawaii ships, profitable performance on its Delta Queen vessels and that it had successfully reached an agreement with Northrop Grumman on the continuation of construction of the Project America cruise ships. In the four weeks subsequent to the September 11 terrorist attacks in New York and Washington D.C., the company said its gross bookings declined 50%, its cancellations increased 30% and it faced a weakened cash position with no prospects for additional capital at this time.
As a result of the September 11 attacks, the Chapter 11 filing became the only alternative to us to preserve our present cash supply, improve our balance sheet and minimize the impact, as much as we are able, on affected passengers and other stakeholders, Calian said. We are grateful to our customers for their support and we are doing the best we can to assist those affected by this decision.
The company has established a customer information hotline (800-856-9904) and additional information is available on the companys Web site at www.amcv.com. Individuals with reservations on future American Classic cruises other than the Delta Queen steamboat should contact their travel agent, their travel insurance company or their credit card company for information about obtaining a refund.
Note: The statements in this press release relating to matters that are not historical facts are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performances or achievements of American Classic Voyages Co. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include construction delays, complications or cost overruns in connection with the construction of new vessels; increases in cruise industry capacity and competition, as well as general business and economic conditions which may impact passenger yields and demand for the Companys products; unscheduled repairs and/or dry-dockings of the Companys vessels; the inability to obtain sufficient capital on commercially acceptable terms or generate sufficient funds from operations to finance the Companys expansion plans and ongoing operations; successful completion of expansion plans, including the construction of new vessels; the impact of changes and/or repeal of laws and implementation of government regulations, and other factors which are described in further detail in American Classic Voyages filings with the Securities and Exchange Commission.
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