Villa Vie Statement: ‘No Outcome Is Assured’

Villa Vie Residences has suspended operations in Cambodia as it works to address what it described as extraordinary increases in fuel costs and evaluates restructuring and recapitalization alternatives, the company announced Tuesday.

The announcement follows the temporary lay up of the Villa Vie Odyssey, the company’s residential cruise ship, which Cruise Industry News reported earlier.

“Since the conflict began in late February, we have taken significant steps to reduce fuel consumption, including slowing the itinerary and spending more time in port,” the company said in a statement. “Those measures have not been enough to offset the extraordinary increase in fuel costs, and we have been unable to continue carrying the resulting operating losses.”

On an equivalent per-cabin basis, monthly fuel expense that historically averaged approximately $1,800 has recently reached an estimated $6,000 to $8,000 in parts of Asia, according to the company.

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