Strategic Value Partners Acquires Hornblower Group Amid Restructuring

Strategic Value Partners, LLC (SVP) has acquired Hornblower Group, the parent company of American Queen Voyages, marking a significant shift in the cruise and maritime industry landscape. This acquisition comes shortly after American Queen Voyages announced the cessation of all cruises and operations on February 20, 2024, signaling a pivotal moment for the company amidst challenging times.

Under the terms of the acquisition agreement, Crestview Partners will retain a minority stake in the Hornblower Group while also becoming the exclusive owner of Journey Beyond, a prominent Australian travel company. This strategic move is bolstered by an injection of $121 million in new financing, significantly reducing Hornblower’s total debt by approximately $720 million and setting the stage for a robust restructuring process.

In light of the acquisition, Hornblower Group has initiated a voluntary Chapter 11 bankruptcy case, with expectations to complete the restructuring within four months. The company aims to refocus its efforts on its core maritime and cruise operations, excluding American Queen Voyages, which is slated for sale or winding down due to its inability to recover from the pandemic’s impact.

Despite the sale or closure of American Queen Voyages, Hornblower assures that all other services will continue to operate as usual. For guests impacted by the cessation of American Queen Voyages’ operations, the company has established a dedicated refund website and provided toll-free numbers to facilitate the refund process for booked cruises.

Kevin Rabbitt, CEO of Hornblower Group, emphasized the company’s commitment to strengthening its financial foundation and continuing to serve its global customer base. He expressed gratitude towards the Hornblower team, vendors, and partners for their unwavering support and dedication during this transitional phase.

This acquisition by Strategic Value Partners represents a strategic maneuver to stabilize and grow Hornblower Group’s diverse portfolio of maritime and cruise services, ensuring the company’s continued success and innovation in the industry.