The Hornblower Group; a diversified ferry, cruise, marine hospitality, and services organization; has filed for Chapter 11 bankruptcy. The filing is expected to help cut the company’s debt load by $720 million. The company enters bankruptcy with assets of up to $1 billion and liabilities of roughly $1.2 billion. Its debt load rose from $630 million in 2019 as the business tried to maintain liquidity during the pandemic.

In the voluntary court-supervised and pre-arranged bankruptcy, Strategic Value Partners, LLC (SVP), a global alternative investment firm, will acquire majority ownership of Hornblower in a proposed debt-for-equity swap while providing a significant equity investment in the business.

As part of the agreement, Hornblower’s overnight cruising business, American Queen Voyages (AQV) will be shut down, and sold if possible. American Queen Voyages operated the American Queen, said to be the largest river steamboat ever built, as well as the American Countess, the American Duchess, and the American Empress.

In a press release the company asserted that except for American Queen Voyages, Hornblower’s current services will not be impacted in any way by the transaction.

The similarly-named, though completely separate U.S. river and coastal cruise company, American Cruise Lines, remains fully operational.

Thanks to Robert Kennedy for contributing to this post.