On November 1st, the lender to Villa Vie Residences has taken control of its residential cruise ship Odyssey, which remains in Cambodia following the suspension of its around-the-world voyage. Residents have been informed of the change, while the vessel is expected to be relocated to Singapore, where it could eventually be offered for auction.
According to a message sent to residents, the lender (Ness, Risan & Partners AS) has assumed responsibility for the ship’s operating expenses, including crew wages, fuel, vessel operations and security. Residents were given the weekend to remove their personal belongings before access to the ship was restricted.
Villa Vie founder and executive chairman Mike Petterson said the company was seeking an operational partner and a restructuring arrangement that could allow it to regain control of the vessel. The process could take between 30 and 90 days, and the lender was reportedly open to considering a financially supported proposal. No auction or sale has been scheduled, according to the company’s communication.
An attempt by a group of residents to purchase the ship was unsuccessful after the lender (a Norway-based, privately-owned investment firm) declined to provide financing. The proposal had reportedly attracted commitments from 169 residents willing to invest additional funds.
Documents reviewed by CBS News indicate that the company had been experiencing financial difficulties for at least three months before the ship became stranded in Cambodia. Internal communications also showed that Villa Vie had been seeking further financial contributions from residents to support operations.
One resident, who reportedly paid US$350,000 for a cabin but spent only 26 days on board, said he had become resigned to the possibility of losing his investment. Other residents have expressed concern that the company’s assurances about the ship’s future could create unrealistic expectations.
The company’s message also outlined the potential cost of a Chapter 11 bankruptcy process, estimating that it could require ~US$3 million during the first 60 days. Villa Vie is considering debtor-in-possession financing and further resident contributions as part of a possible restructuring plan.
The future of Odyssey remains uncertain. Before the current difficulties, Villa Vie’s parent company, Residential Cruise Holdings, had been pursuing the acquisition of another cruise ship and developing two additional residential cruise projects. The company has since stated that its immediate priority is resolving the situation involving Odyssey.