Lender seizes control of stranded Villa Vie Odyssey cruise ship

Company founder and executive chairman Mike Petterson stated the company is hopeful about regaining control if they can secure a partnership. “This is a 30- to 90-day process, and, during that process, we have time to get a restructure done,” he told CBS News.

Residents were given a brief window to remove their belongings before the lender took over operational costs, including crew salaries, fuel, and vessel upkeep. Petterson emphasized that negotiations are ongoing and a return to company control is possible.

Some residents expressed concern that the company’s optimistic outlook offered a misleading sense of hope. A resident-led attempt to purchase the ship was unsuccessful after a lender denied funding, despite pledges from 169 residents.

Internal communications revealed the cruise ship faced financial difficulties for at least three months before arriving in Cambodia. The company had previously sought additional funding from residents, with one internal document highlighting the need to differentiate between residents unable and unwilling to contribute further.

Joel Greiff, a resident from Naples, Florida, who invested $350,000 in a cabin, spent only 26 days aboard after boarding in October. He received a message about the company’s financial struggles in late July and subsequently sold his RV. He is currently residing in Kompat, Cambodia.

Greiff has accepted the likelihood of losing his investment and believes the company lacks business acumen. The future of the Villa Vie Odyssey remains uncertain, though Residential Cruise Holdings, the parent company, had previously been exploring the acquisition of additional ships and development of new residential cruise projects. Petterson confirmed the company’s sole focus is now on the Odyssey.

Villa Vie is reportedly entirely funded by its residents, with no external stakeholders. A Chapter 11 bankruptcy filing would cost approximately $3 million for the initial 60 days, according to a message sent to residents. The company intends to pursue a plan involving DIP financing and resident maintenance collections.