Hornblower Cruises’ plan confirmation hearing scheduled for June 3

By Sarah Lizee

Olympia, Wash., April 18 – Hornblower Cruises and Events, Inc. had the hearing on confirmation of its Chapter 11 plan scheduled for June 3, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the company has received conditional approval of the disclosure statement for the plan.

The plan reflects an agreement the company reached with its investors, under which funds managed by Strategic Value Partners, LLC and its affiliates will acquire majority ownership of Hornblower and provide a significant equity investment in the business.

Crestview Partners will retain a significant minority position in Hornblower and become the sole owner of Journey Beyond, a stand-alone operating unit of Hornblower in Australia.

The agreement also provides for Hornblower to receive $121 million in new-money financing from SVP-managed funds and Crestview, and the company’s total debt will be reduced by about $720 million.

Hornblower has received a commitment for $300 million in debtor-in-possession financing from Deutsche Bank Private Credit & Infrastructure to refinance its existing super-priority term loan, in addition to the $121 million in new-money financing from SVP-managed funds and Crestview.

Under the plan, other secured claims and other priority claims will be paid in full.

Holders of first-lien claims will receive a recovery of 15.46%, through a pro rata share of 96% of rights, 96% of new common equity, subject to dilution, a Crestview cash contribution and 96% of the American Queen Voyages (AQV) assets.

Holders of revolver claims will receive a recovery of 9.74%, through a pro rata share of 4% of rights, 4% of new common stock, subject to dilution, and 4% of AQV sale proceeds.

Holders of general unsecured claims are expected to receive a recovery of 0.03% from a cash pool.

Holders of unsecured go-forward trade claims are expected to receive a recovery of 70%.

Intercompany claims will be adjusted, reinstated or discharged.

Intercompany interests will be reinstated or canceled.

Section 510(b) claims will be discharged.

Interests in Hornblower and Hornblower Holdings LLC will be canceled with no distribution.

Hornblower is a San Francisco-based cruise and event company. The company filed bankruptcy on Feb. 21 under Chapter 11 case number 24-90087.

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