Luxury cruise operator to seek Chapter 11 bankruptcy after fuel price surge strands passengers in Cambodia

More than 200 passengers, the majority of whom are U.S. citizens, were left in Cambodia after Villa Vie Residences, the Florida-based operator of the MV Odyssey, suspended its continuous around-the-world cruise due to sharply higher fuel expenses. The company said the conflict with Iran caused fuel prices to rise from about $700 per ton to between $2,000 and $3,000 per ton, while the ship consumes 700-800 tons each month.

CEO Mikael Petterson told CBS News that monthly fuel costs per cabin jumped from roughly $1,800 to $6,000-$8,000, pushing total operating expenses from $400,000 to $2 million. He said the firm tried to mitigate the impact by slowing the itinerary and extending port stays, but the measures were insufficient. "For us, when our monthly expenses go up from $400,000 to $2 million, where are we going to get the $1.6 million?" Petterson said.

The company said it is seeking a financial partner and plans to file for Chapter 11 bankruptcy. "We've borrowed money, we've stretched our payrolls as far as we can, and we're at a point where we need capitalization," Petterson added.

One passenger, Benjamin Schatz, who had been living on the ship for about a year, said he was given only hours to pack his belongings and disembark. "There are people now who are homeless and who have very little money and don't know what they're going to do," he told CBS News.