ParrisWhittaker Plays Key Role In Billion Dollar Crystal Cruises Litigation

The collapse of Crystal Cruises in February 2022 made headlines across the globe. And attention wasn’t confined to the finance pages or specialist maritime publications. The collapse of the billion-dollar business impacted small suppliers and consumers too. Reports that the company was holding $100 million in customer money meant this was a story that interested everyone.

It’s a story, too, in which we here at ParrisWhittaker are playing a crucial role. We were instructed by the Florida-based corporation responsible for liquidating all of Crystal’s assets. Florida’s Circuit Court approved our firm to protect Crystal Cruise assets in the Bahamas. The corporation has recognized our efforts, and we were given the authority to collect funds as liquidators and the authority to appoint counsel in the Bahamian proceedings.

It’s notable that our expertise in maritime and shipping litigation led us to be chosen to act in this highly significant case ahead of more internationally recognised firms that may to some have appeared the natural choice for such a large-scale case.

ParrisWhittaker is an award-winning law firm headquartered in the Bahamas with additional offices in Turks and Caicos. We combine highly technical legal expertise with a personal, hands-on approach. Direct, partner-led work and accessibility that’s crucial to the client experience mean we provide a different kind of legal service. 

You can get in touch with our team directly on 1-242-352-6110 and 1-242-352-6112. Alternatively, you can always contact us online.

Crystal Cruises: Background To Collapse Of A Cruise Giant

Miami-based Crystal Cruises was established back in 1988 and the brand had become synonymous with the high-end luxury cruise market. Purchased by a Hong Kong based group in 2015, there were signs of instability even ahead of its collapse in February 2022. In August 2020 for example, in the midst of the Covid pandemic, all cruises were cancelled and payments to creditors suspended. When the end did come however it was spectacularly sudden. The Hong Kong owners filed liquidation proceedings in Bermuda in February 2022. In an instant, it seemed  the group, once valued at $1billion was reduced to nothing but a  mountain of debt to travellers, travel agents, crew, employees and suppliers.

What Legal Process Is In Place To Deal With The Collapse?

Legal proceedings to recover Crystal Cruises debt and salvage what remains of the business began in Florida where the company was headquartered. The Florida court elected to use the ‘assignment for the benefit of creditors’ process (‘ABC’). Similar in some ways to bankruptcy proceedings, ABC is common in Florida and some other US States like California. The process involves : 

• The legal transfer or ‘assignment’ of all the assignor’s (in this case Crystal Cruises) assets to a court-appointed assignee.  
• Liquidation by the assignee of these assets in accordance with Florida’s assignment laws.  

The ABC process is widely used in Florida because it enables a cost-effective and practical liquidation of assets. It can reduce the possibility of multiple actions by individual creditors trying to acquire or freeze specific assets of the assignor.

The Bahamas Connection And Involvement Of ParrisWhittaker

When Crystal Cruises collapsed, two of its ships – the Crystal Symphony and the Crystal Serenity – were anchored off the Bahamas. Both vessels were under arrest because of the failure of the parent company to settle fuel bills. 

ParrisWhittaker was chosen by the Florida appointed assignee to perform necessary legal services in connection with the Bahamian arrest proceedings of the vessels. This included assisting with the preservation and assignment of various assets and cash owned by Crystal Cruises located on board the arrested vessels.

In what was an extremely complex and high profile case our partner A. Kenra Parris-Whittaker worked closely with the assignee resulting in the ultimate sale of the two arrested ships for $128 million. 

Contact Us

Our involvement in the high stakes, multi-jurisdictional Crystal Cruises litigation demonstrates our ability to provide bespoke, high-quality advice in even the most complex matters. We think that in our specialist practice areas, including shipping litigation, we most definitely punch above our weight. This is reflected in our success in regularly attract high calibre work from some of the big players in the shipping sector.  

For advice, please feel free to reach out to us at ParrisWhittaker for an initial, no-obligation discussion.