Regal Cruises line shuts down, cancels cruises

PORT MANATEE, FLA. -- The Regal Cruises line shut down operations and canceled future voyages Monday in the wake of unpaid bills and the seizure of its only ship by federal marshals.

Regal Cruise officials had been trying to sell the troubled company to an unidentified buyer, but a deal collapsed over the weekend, Port Manatee spokesman Steve Tyndal said. The company offered winter and spring cruises in the Gulf of Mexico, Caribbean and Panama Canal and summer and fall cruises along the New England coast from the Port of New York.

Company officials said in a statement they had no other choice after the 612-foot Regal Empress was "arrested" by marshals April 18.

Officials said they had hoped to resolve the ship's seizure by selling the business but had been unable to arrange a sale.

The company said a bond had been posted with the Federal Maritime Commission and customers who had already paid for cruises could seek a refund.

Would-be passengers were told to keep in touch with their travel agents. The company also said it was filing in state court for a distribution of its assets. Company officials did not answer phone calls made to their offices Monday seeking further detail.

Regal Cruises, a privately held company founded in 1993, had about 500 people working for the company, most of whom were contract workers employed by other companies who will be reassigned to other ships, port officials said.

Earlier this month, the cruise line was forced to cancel two scheduled cruises when U.S. Marshals seized the Regal Empress. The ship was seized because of a $750,000 lien placed on it by a Fort Lauderdale company that claims it was never paid for repairs to the vessel.

The Bahamas-registered ship, which could transport more than 1,000 passengers and nearly 400 crew members, remains at the port while under control of federal marshals.

Port Manatee officials also said they are owed $300,000 for dockage and other fees dating back to November.

"We have lost a 10-year customer and we are sad this day has come," Tyndal said.

Regal Cruises was the port's only cruise ship, and Tyndal said the port will lose about $500,000 a year with the line's closure.

The Bahamas-registered ship, which could transport more than 1,000 passengers and nearly 400 crew members, remains at the port while under control of federal marshals. The Regal Empress was built in Scotland in 1953.

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On the Net:

http://www.regalcruises.com