Saying they had been unable to obtain insurance for the concept of a community living onboard a former P&O Cruises ship, the organizers of the project sold the Pacific Dawn for scrap.
Renamed MS Satoshi, they had planned to anchor the 1991-built vessel full-time off Panama.
In an announcement that was sent to potential investors, Ocean Builder’s CEO Grant Romundt wrote they would not be able to proceed "because of archaic big insurance companies that cannot adapt to innovative new ideas.”
He added that no protection and indemnity insurance company would insure the Satoshi ship. Without insurance, it could not have a crew, which meant the ship would lose her class rating and flag and any possibility of running any onboard businesses.
"Assuming it would be easy to get insurance to use the ship as a stationary residential cruise ship was incorrect,” Romundt wrote.
MS Satoshi is due to reach Panama next week where she will fuel and be supplied prior to continuing to India's Alang Ship Breaking Yard.
Ocean Builders, also developing “floating, off-grid seapod homes” at the beginning of October announced the launch of the former cruise ship community and took delivery of Pacific Dawn on November 5.
The company had started an auction process to sell the staterooms as residences saying that it would become a technology & innovation hub for expats, entrepreneurs, digital nomads, and cryptocurrency companies that wish to test their technology in a controlled environment. Ocean Builders said vacation rentals would be available on the ship and they were seeking businesses to run entertainment, dining, and other services aboard the vessel.
The plan was to anchor in the Gulf of Panama and receive the first residents in January 2021.