Exhibit 99.1
COMMODORE HOLDINGS TO SUSPEND OPERATIONS
Hollywood, FL (December 27, 2000) Commodore Holdings Limited (NASDAQ: CCLN)
announced today that it must suspend its cruise operations this weekend. The
Company has cancelled cruises on the Enchanted Capri beginning Sunday December
31, 2000 and on the Enchanted Isle and the Crown Dynasty beginning Saturday
December 30, 2000. All passengers currently onboard the vessels will be returned
to their original ports of embarkation.
"We deeply regret having to take this action, but we had no other choice" said
Fred A. Mayer, CEO of Commodore. "Negotiations between the lenders holding our
mortgages just could not be resolved in time to avoid this consequence."
Commodore's troubles began with its ill-fated San Diego day cruises this past
spring. The venture was plagued by logistical difficulties and the passage of a
state legislative referendum favoring land-based gaming, which had a negative
impact on sales. Commodore decided to terminate the program last June, but the
heavy costs associated with the project continued to affect its financial state.
Commodore has been working around the clock with its lenders attempting to
conclude a financing arrangement that would have prevented the cancellation of
these cruises but has been unable to reach a final resolution. Commodore today
filed a petition for protection under Chapter 11 of the United States Bankruptcy
laws. Pursuant to such filing the Company will develop a strategy to consolidate
its debts and then file its reorganization plan with the court.
The Company is deeply sorry for the inconvenience the cancellations of these
cruises will cause its passengers. Commodore is now making every effort to
contact passengers on the upcoming sailings to advise them of the cruise
cancellations.
This press release contains forward-looking statements that are subject to
change. These forward-looking statements may be significantly impacted, either
positively or negatively by various factors, including without limitation,
competing in a saturated industry against modern and larger fleets, the ability
of the company to obtain financing to fund its continued operations, a high
percentage of debt on assets owned by the company, the company's deficit working
capital position, the potential for additional government regulation and
maintenance to aging vessels and general economic conditions in the cruise and
gaming industries and the markets in which the company operates. Additional
information concerning potential factors that could affect the company's
financial results is included in, but not limited to, its form 10-K and other
filings with the Securities and Exchange Commission.
