The ships of the now defunct Crystal Cruises have sailed away. And the cash that would-be cruisers paid for future trips is in parts unknown.
But now, creditors, as well as customers who bought trips that were cancelled, will have a shot at recovering some of their money through a liquidation case filed early last month in Miami-Dade Circuit Court.
The action is not a traditional bankruptcy, but a state court procedure known as the assignment for the benefit of creditors.
“Our goal is to maximize the recovery of assets and provide a claims process to creditors that allows them to realize the highest potential recovery regardless of the size of their claim,” said Fort Lauderdale attorney Mark Healy in a statement released Tuesday.
Healy was appointed by the court to track down company assets and set up a court-approved repayment plan to customers and other creditors such as vendors.
In early February, Crystal shut down its U.S. headquarters in Miami and terminated its employees. The action came after Crystal suspended operations due to the insolvency of its parent firm, Genting Hong Kong. At one point, arrest warrants were issued for the Crystal Symphony and Crystal Serenity over unpaid fuel bills. The ships were eventually seized in the Bahamas.
Thus far, it is unclear how much money is available and how much is owed by Crystal and two affiliated companies in the case. A Bloomberg report in February placed the debts at $100 million.
It is unknown what assets remain other than computers and office furniture, some bonds, reserve accounts, and the marketing value of various databases, the news service said.
The three-ship fleet, the Crystal Symphony, Crystal Serenity, and Crystal Endeavor, is now in the hands of an administrative firm called V.Ships Leisure, according to Bloomberg.
In response to emailed questions from the South Florida Sun Sentinel, Healy said Crystal “appears to have limited assets to marshal due to the fact that Crystal Cruises LLC was responsible for operations only, and did not own any of its vessels.”
Claim forms for creditors
“We’re still investigating the assets and liabilities of the company,’ he added.
In a statement, he said all non-passenger creditors should be receiving a claim form in the mail within the next two to three weeks.
“We empathize with passengers making claims and will be in communication with them via the website,” he said.
Once assets are liquidated, he’ll seek the approval of Circuit Judge Alan Fine to distribute funds to the people who have submitted claims.
Healy has created a website at: https://crystalcruiseclaims.com/ to process claims, provide updates and display documents related to the case.
