Luxury Cruise Operator to Seek Bankruptcy Protection After Fuel Costs Spike
MV Odyssey residents, many of whom sold homes to live aboard, were given only hours to leave as the Florida-based company prepares to file for Chapter 11.
By Elena Svoboda ·
Villa Vie Residences, the Florida-based operator of the MV Odyssey, will file for Chapter 11 bankruptcy after suspending its continuous around-the-world voyage on Tuesday. The decision leaves more than 200 passengers, primarily American, without housing as the company searches for a financial partner to stabilize the ship's operations.
Mikael Petterson, the CEO of Villa Vie Residences, explained in a phone interview on Wednesday that the war with Iran fundamentally altered the economic viability of the vessel. Before the conflict escalated in late February, the company paid an average of $700 per ton for fuel. Since then, the price has surged to between $2,000 and $3,000 per ton. Given that the Odyssey consumes between 700 and 800 tons of fuel monthly, the cost increase proved unsustainable for the operator.
Petterson stated that the company attempted to manage the crisis by slowing the ship's itinerary, spending five or six days in each port while hoping for a resolution in the Middle East. This strategy reduced monthly expenses from a baseline of $400,000 to a peak of $2 million. Despite these adjustments, the company could not absorb the $1.6 million monthly deficit and chose not to pass the rising costs on to residents.
The Odyssey launched in October 2024, offering passengers the chance to purchase permanent cabins for several hundred thousand dollars. Buyers received a 15-year minimum residency guarantee, and some sold their homes to make the move. In a statement, Villa Vie Residences noted that per-cabin fuel costs rose from an average of $1,800 per month to between $6,000 and $8,000 during the conflict.
Resident Benjamin Schatz, a retiree who has lived on the ship for approximately one year, described the sudden suspension as a shock. He was given only a few hours on Wednesday to pack his belongings. Schatz, who told CBS News in April 2025 that he viewed the ship as his forever home, now finds himself in denial.
Petterson said the company has stretched payrolls and borrowed funds to reach its current breaking point. He described the burden of the fuel costs as backbreaking when divided among the 300 people aboard. The company will now proceed with bankruptcy filings to restructure its debts.
Schatz expressed concern for other residents who are now homeless and have limited financial resources. He noted that many do not know what they will do next after losing their homes to the bankruptcy process.
Source: CBS News
