The company that runs the NYC Ferry service filed for bankruptcy on Wednesday despite breaking ridership records last year.
The 100-year-old cruise operator said the financial filing will not affect NYC Ferry service. The company’s contract with the city to run the system was renewed for another five years in 2023.
The bankruptcy specifically pertains to just one of Hornblower’s smaller lines – American Queen Voyages, an overnight riverboat cruise business that ceased operations on Tuesday, pending a sale or a shutdown. Hornblower said that American Queen Voyages was lagging in performance, and had not been able to bounce back after the pandemic.
“This will not affect NYC Ferry service whatsoever – in fact, this deal injects new capital into the parent company, while eliminating debt unrelated to ferry operations, which will allow the system to continue its record growth across the five boroughs,” said Hornblower CEO Kevin Rabbitt.
The bankruptcy deal’s fundamentals include an injection of $121 million in new financing with about $720 million in total debt reduction, which is tied mostly to its American Queen Voyages line. The new financing will “support ongoing operations and total debt reduction,” but all other operations outside of American Queen Voyages will continue business as usual.
“There will be no disruptions to the system and NYC Ferry riders will continue to receive the same exceptional service reliability and convenience when riding,” said Jeff Holmes, a spokesperson for the NYC Economic Development Corporation.
Hornblower operates both land and sea trips in more than 100 countries and 125 U.S. cities. The San Francisco-based company has been running the NYC Ferry system and its route expansion since 2016. The NYC Ferry’s original six-year contract cost $325 million plus subsidies of $10 million to 20 million per year. The city renewed its contract with Hornblower for $405 million for another five years in 2023.
Ridership broke records…
Read the full article here
Leave a Reply