Villa Vie Residences' residential cruise ship Villa Vie Odyssey reportedly departed Cambodia for Singapore at around 00:00 local time on Wednesday, November 4, after the lender took possession of the vessel.
The ship's AIS track indicated Singapore as her destination. A company message to residents, obtained by CBS News, confirmed the change of control.
"The lender has taken possession of the ship, but that does not mean Odyssey's future has been decided," the message said. "No sale has been scheduled. We believe there is time to bring forward a viable plan and are working to do that."
Villa Vie founder and Executive Chairman Mike Petterson told CBS News the lender had assumed responsibility for the vessel.
"They have now the responsibility to pay the crew, fuel and the operations of the vessel and safekeeping of the vessel," Petterson said.
Sources cited by CBS News said the ship could eventually be auctioned in Singapore.
Management is seeking an operational partner and a funded restructuring plan to recover the ship.
"This is a 30- to 90-day process, and, during that process, we have time to get a restructure done," Petterson said.
He added that the lender would be, "willing to work with a funded plan". Executives have since reiterated that refinancing cannot be guaranteed.
In its message to residents, Villa Vie estimated that a Chapter 11 proceeding could cost US$3 million in its first 60 days. It proposed relying on debtor-in-possession financing and resident maintenance collections, together with new capital and experienced operators.
Sources interviewed by CBS News said a lender's refusal to provide financing ended a resident-led effort to purchase the ship. The proposal had attracted pledges from 169 residents prepared to contribute more money
Villa Vie suspended operations on October 27, citing its inability to obtain fuel. At the time, 203 passengers and 156 crew were on board.
Residents were given until 14:00 that day to disembark.
Some former residents have complained that their belongings were still aboard when the ship sailed.
Most former residents remain in Cambodia. BTV News Global reported on November 2 that nearly 30 had flown home and more than 60 were staying in hotels in Preah Sihanouk Province.
Cambodia's Ministry of Tourism coordinated hotel discounts of 40 to 50 per cent for the passengers.
The 24,344GT Villa Vie Odyssey was built in Spain and entered service in 1993. She sailed as Braemar for Fred Olsen Cruises, which acquired her in 2001.
A 31-metre mid-body was added in 2008, giving her a length of 195 metres. Villa Vie took delivery in February 2024, and the ship departed Belfast on her residential voyage on October 3, 2024.
