The often long and painful road to receiving funds from a bankrupt company is underway for those to whom the now defunct Crystal Cruises owes money. The courts appointed Mark Healy, an insolvency practitioner with Florida-based Michael Moecker & Associates, to handle the claims process.
A total of three companies are to be liquidated, Crystal Cruises LLC and two related entities, Crystal AirCruises, LLC and Crystal Holdings US, LLC.
Maximize asset recovery
Insolvency specialist Mark Healy of Florida-based law firm Michael Moecker & Associates will have the difficult task of recovering as much money as possible from the liquidation of bankrupt cruise line Crystal Cruises. However, this task will be much more difficult than it seems.
Crystal Cruises was only responsible for operations and did not own any ships. This leaves intangible assets such as customer data and possibly the sale of office equipment etc.
“Our goal is to maximize asset recovery and provide creditors with a claims process that allows them to realize the highest potential for recovery, regardless of the size of their claim,” said assignee Mark Healy.
That being said, there could be other ways customers could get their funds back. “A vast majority of customer money is held in trust by VISA, Mastercard and American Express’ – well over $100 million,” said the former CEO of the cruise line jack anderson according to Bloomberg.
Court-appointed Michael Moecker & Associates and Mark Healy will work with credit card companies to approve refunds. Jack Anderson estimates that 75-80% of customers have paid for their cruises by credit card.
Of course, it’s not just the guests that Crystal owes money to. Several vendors owe millions. One of them is the fuel supplier Peninsula Petroleum Far East Pte. Ltd., which moved to have the Crystal ships stopped in January of this year to recover funds.
Guests can register online
Customers who had booked a cruise aboard one of Crystal Cruises’ ships can already register on a website that Healy has already set up, https://crystalcruiseclaims.com/, where customers who are owed money can make their claims.
On this website, guests can also get updates, download case-related documents, and get answers to frequently asked questions.
All passengers who have been identified as potential creditors are expected to receive an email within the next few weeks with a claim form and instructions on how to file a claim. “We sympathize with passengers who make complaints and will be communicating with them via the website,” Healy added.
Once the liquidation process is finalized, Healy will seek court approval before Judge Alan Fine of the Florida 11th Circuit to distribute the funds to those who submitted claims.
Crystal Cruises has been a victim of the issues surrounding Hong Kong-based Genting, the parent company of Crystal Cruises. The company became one of the main victims of the pandemic when it filed for bankruptcy in January of this year.