Odyssey cruise ship held in Singapore under court order

The Villa Vie Odyssey, the residential cruise ship that abruptly halted its round-the-world voyage in Cambodia in late October, has been placed under arrest in Singapore under a court order, Singapore’s maritime authority said.

The ship arrived in Singapore on Sunday and is anchored in the country’s port waters, the Maritime and Port Authority of Singapore said in a statement to Business Insider. “The vessel has been placed under arrest pursuant to a court order,” the authority said. It said the crew are well, their welfare is being handled by the ship’s creditors, and no passengers are on board.

The listing of the vessel on the Singapore Judiciary’s list of ships under Sheriff’s arrest does not disclose the underlying claim, Business Insider reported. A solicitor named as the arresting party did not immediately respond to a request for comment.

Villa Vie Residences, the Florida-based operator, suspended the voyage on Oct. 27 while the ship was docked in Sihanoukville, Cambodia. The company blamed fuel costs, saying monthly fuel expenses per cabin had risen from about US$1,800 to as much as US$8,000 in parts of Asia since the Iran war began on Feb. 28, CNBC reported. Cambodian officials said the ship was carrying 203 passengers, mostly Americans, and 156 crew, Yahoo Finance Canada reported.

Passengers who spoke to Business Insider said they were given only hours to disembark after months of repeated requests for cash from management. Suites on the ship started at about US$230,000 (about $323,000), according to Yahoo Finance Canada.

The company’s founder, Mike Petterson, told CBS News that Villa Vie ran out of money while looking for a financial partner and planned to seek Chapter 11 bankruptcy protection. CBS News reported on Nov. 8 that the ship was taken over by its lender and could be auctioned in Singapore. It said one resident-led effort to buy the vessel failed after a lender denied funding, while a second group is still working on a bid at auction, according to two sources familiar with the matter.

CBS News also reported that some residents are considering legal action over a fuel loan program offered in April, in which residents put up more than US$2 million for a promised return of up to 24 per cent. The agreement obtained by CBS News describes the loans as unsecured, with no collateral or guarantees. Petterson said the financing was arranged during an urgent period to support immediate operating needs, including fuel, and that he takes residents’ concerns seriously. He declined to discuss individual claims because legal action is being considered.

Canadians were among the people affected. The Globe and Mail has reported that Canadians aboard said requests for more money seemed never to stop. Yahoo Finance Canada noted that few Canadians would buy a cabin on a ship, but many prepay thousands of dollars for cruises, tours or long stays abroad, and asked who covers the money and the flight home if a company stops operating mid-trip.

The fuel pressure behind the collapse has also reached travel closer to home. Canada News Media has reported on the jet fuel crisis and what it means for travel plans and on oil prices climbing as fears over the Strait of Hormuz grew.

It is not clear what claim led to the arrest, who will bid for the ship, or whether residents will recover the money they put into cabins and the fuel loans.

Pictured: the MS Villa Vie Odyssey, file photo. Photo: JerickVillaruel, CC BY-SA 4.0, via Wikimedia Commons.

If you find reporting like this useful, consider supporting Canada News Media, an independent Canadian newsroom with no corporate parent.