Ambassadors International announced that the U.S. Bankruptcy Court in Delaware approved the sale of substantially all of Ambassadors' assets, including its principal operating unit, Windstar Cruises, to TAC Cruise LLC, an affiliate of Xanterra Holding Corp.
The sale is expected to close next week.
During a court-supervised competitive bidding process, TAC Cruise submitted a winning bid of $39 million in cash.
Windstar will be operated as a wholly owned subsidiary of Colorado-based Xanterra Holding.
“Windstar emerged as a tremendous long-term opportunity due to the line's exceptional product, loyal following and high level of guest satisfaction in the luxury travel market,” Xanterra Holding CEO Andrew Todd said in a statement. “Xanterra intends to maintain Windstar's business and operations and to invest in Windstar's growth following the close of the sale.”
It is expected that Ambassadors' stockholders and holders of Ambassadors' convertible notes will not receive any distribution after the sale and that these securities likely will have little, if any value after Ambassadors' Chapter 11 proceeding, according to the company’s statement.
Windstar Cruises is a three-ship fleet of luxury yachts. Carrying just 148 to 312 guests, yachts cruise to nearly 50 countries, calling at 100 ports throughout Europe, the Caribbean and the Americas.