Commodore Holdings Files for Bankruptcy, Suspends All Cruises

(Bloomberg) -- Commodore Holdings Ltd., owner of the Commodore Cruise Line, said it filed for Chapter 11 bankruptcy protection and canceled cruises after failing to negotiate a new debt-payment agreement with lenders.

The Hollywood, Florida-based company canceled sailings of its Enchanted Capri cruise ship on Sunday and its Enchanted Isle and Crown Dynasty ships on Saturday. Passengers currently on board the ships will return to port, the company said.

Commodore ran into financial problems after canceling cruises out of San Diego in June, Chief Executive Fred Mayer said. Rough seas prevented Commodore's San Diego cruises from docking at a pier the company built in Rosarito, Mexico, he said. A California Indian tribe that had formed a partnership with Commodore backed out to focus on its own casino business, Mayer said.

The Viejas Band of Kumeyaay Indians, who had operated the casino on board Commodore's Enchanted Sun cruise ship, ended the partnership after California voters in March passed a ballot measure allowing the expansion of casino gambling on Indian lands.

Commodore said it filed for bankruptcy protection after ``around the clock'' negotiations with mortgage lenders failed.

Commodore shares fell 1/32 to 5/32 today before trading was halted. The shares have fallen 96 percent this year.

Dec/27/2000 18:11 ET