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Royal Caribbean to reorganize Pullmantur JV due to coronavirus hit

Royal Caribbean Cruises Ltd. and Cruises Investment Holding said June 22 they have filed for the reorganization of their Pullmantur Cruceros joint venture in Spain, under the country's insolvency laws.

Cruises Investment Holding owns 51% of the Spanish cruise line, while Royal Caribbean owns the remaining 49%.

Pullmantur's board said the move was due to the impact of the coronavirus crisis on the company's operations.

"Despite the great progress the company made to achieve a turnaround in 2019 and its huge engagement and best efforts of its dedicated employees, the headwinds caused by the pandemic are too strong for Pullmantur to overcome without a reorganization," the board said.

All Pulmantur sailings through Nov. 15 have been canceled, according to the release.

Affected guests will be offered the option to sail on other Royal Caribbean cruise lines including Royal Caribbean International and Celebrity Cruises, the companies said.

Royal Caribbean noted that all of its assets linked to the Pullmantur joint venture had been included in the noncash asset impairment charges reported in its first-quarter results.

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