Norwegian Cruise Line may go out of business

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Norwegian Cruise Line has indicated that they may be forced to go out of business, as it tries to raise the money it will need to weather the coronavirus crisis. In a filing with the U.S. Securities and Exchange Commission Tuesday, the company said its accounting firm has “substantial doubt” about their ability to continue as a going concern because of the COVID-19 pandemic. Norwegian has also announced that it arranged to borrow US$400 million from investment firm L Catterton through notes due in 2026, and plans to raise nearly $1.35 billion more in a private placement of other notes due in 2024, and up to $400 million more through the sale of additional shares of stock. Altogether that should provide the company with $3 billion in additional cash reserves, which is enough to keep the company alive for the next 18 months.

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