Carnival Corporation Announces Additional Steps to Further Strengthen Ability to Manage through Extended Pause in Guest Operations
Carnival Corporation & plc announced today a number of additional actions it is taking to further strengthen its liquidity position in the event of an extended pause in guest operations due to COVID-19.
Carnival Corporation was the first to pause the guest cruise operations of some of its brands in the face of the impact of the COVID-19 global pandemic, followed on March 13th by the rest of its brands and the other cruise companies.
That action was taken before stay-at-home or shelter-in-place was implemented in the U.S. and before U.S. hotels, airlines, restaurants and other forms of public gathering or transportation began shutting down or limiting service.
Last month the company completed a successful financing effort with a heavily oversubscribed offering of senior secured notes, senior convertible notes and common stock, netting $6.4 billion of additional liquidity. To further strengthen liquidity, Carnival Corporation and its brands are announcing a combination of layoffs, furloughs, reduced work weeks and salary reductions across the company, including senior management.
These moves will contribute hundreds of millions of dollars in cash conservation on an annualized basis.
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