Royal Caribbean Group (RCL) and Cruises Investment Holding have announced that they have filed for Pullmantur Cruises joint venture reorganisation.

It has been carried out according to the Spanish insolvency laws.

Cruises Investment Holding owns a 51% stake in the joint venture, while the remaining 49% is owned by RCL.

Pullmantur Cruises board of directors said that the unforeseen impact of the ongoing global Covid-19 pandemic has made the decision necessary.

The company’s employees were informed by the Pullmantur management after the filings were completed with the authorities.

The board said: “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 reorganisation.”

Due to the travel restrictions and health concerns, the company suspended the cruise sailings until 15 November.

RCL said that the guests who have booked Pullmantur cruise voyages can opt to sail on other trips offered by other RCL brands.

The offer details will be shared in the future with the guests.

On the three ships of Pullmantur, the crew are stationed at minimum maintenance levels and their return home will be managed by the company.

RCL said that ‘that all of its assets related to the Pullmantur Cruceros joint venture had been included in the non-cash asset impairment charges reported in their first quarter of 2020 results’.

In March 2018, RCL and Ctrip announced plans to terminate the China-based SkySea Cruise Line joint venture within the year.