A resident-backed effort to buy and keep Villa Vie Odyssey operating has ended, leaving passengers without a self-funded plan to continue the voyage. Sagar Capital said in a letter to residents dated October 31 that two months of talks with the ship’s lender failed to produce an agreement. Its review of Villa Vie’s records also found more debt than expected, while potential legal liabilities, bankruptcy costs and ongoing operating expenses could expose residents to excessive financial risk. The ship is currently docked in Sihanoukville, Cambodia.
169 residents pledged funds, but none were collected
Sagar Capital said 169 residents had pledged to contribute. Cambodian authorities had previously said 203 residents were aboard when the cruise ship arrived. Paul Montoya, who served on a residents’ committee and helped gather expressions of interest, said the organizers were prepared to put in “a reasonable amount” up front. Other residents were invited to make matching pledges through WhatsApp or in person.
The pledges were not enough to support the plan, though the total amount was not disclosed. Sagar Capital emphasized that it had not collected any money from residents.
Montoya described the proposed takeover as a “last-ditch effort.” He said there was broad support among residents, but the challenges facing the deal made it fragile. For some people who had bought cabins intending to live at sea long term, the proposal had been seen as the final chance to keep Odyssey operating.
Lender talks, debt and legal costs stalled the deal
Sagar Capital cited five reasons for ending the effort. The first was its failure to reach terms with the ship’s lender after two months of negotiations. The letter said the lender and Columbia Ship Management had taken control of the vessel and planned to sell it at auction.
Sagar Capital said it was not given access to Villa Vie’s records until last Saturday. Its review then found that the company’s debt was significantly higher than expected. Taking over Villa Vie and replacing its management could also leave the group exposed to existing and future lawsuits, the letter said.
Bankruptcy proceedings could add further pressure. Sagar Capital estimated that a Chapter 11 restructuring in the United States could cost about $3 million in its first 60 days, with litigation potentially extending the process. The group also said it could not find a monthly fee that would both cover the ship’s operating costs and remain affordable for residents. It was unwilling to ask them to put personal savings into a plan with an uncertain outcome.
Villa Vie continues to pursue a capital restructuring
Before the residents’ bid fell apart, Villa Vie had discussed a potential deal with Oneil Khosa, the former chief executive of Margaritaville at Sea. That proposal collapsed earlier this month. Villa Vie CEO Petterson has said the company is focusing on a capital restructuring and seeking a better-capitalized operating partner. He has also said the company is considering bankruptcy.
Odyssey recently stopped in Cambodia, where residents were asked to disembark on Tuesday within an eight-hour window. Cabin prices for Villa Vie residents ranged from $119,999 to $439,999. Sagar Capital said residents’ pledged funds had not been collected. Montoya said residents now had to hope someone else would take up the plan, while resident Cheryl Ethrington said she still hoped a new group would step in, but that life would go on if no one did.