Luxury Ship Halts Voyage as Fuel Costs Spike, CEO Announces Bankruptcy Plans

Villa Vie Residences stopped the MV Odyssey from sailing on Wednesday, leaving more than 200 people mostly American passengers stuck on the vessel. The Florida based company stated it was suspending operations because fuel expenses had risen sharply. CEO Mikael Petterson confirmed to CBS News via phone interview that the firm intends to file for Chapter 11 bankruptcy protection.

Petterson attributed the financial collapse to the conflict with Iran, which began in late February. Before the war, the ship paid an average of $700 per ton for fuel. Since then, the price has jumped to a range of $2,000 to $3,000 per ton. The Odyssey consumes between 700 and 800 tons of fuel every month. Petterson described the burden as backbreaking when divided among the 300 people on board, noting the pressure had built for nine months.

The company noted in a statement that fuel costs per cabin increased from an average of $1,800 a month to between $6,000 and $8,000. Monthly operating expenses also rose from $400,000 to $2 million. Petterson said the company tried to absorb these costs rather than passing them to passengers, but the missing $1.6 million in monthly spending became unsustainable.

The ship began its continuous around the world voyage in October 2024. Passengers could buy permanent cabins for several hundred thousand dollars, with some selling their homes to fund the move. Buyers received a guarantee of at least 15 years of residency aboard the vessel. To manage costs, the vessel slowed its schedule, staying in each port for five or six days while hoping the Middle East conflict would end. That strategy failed to prevent the financial strain.

Petterson said the company borrowed money and stretched payrolls while searching for a new financial partner. He stated the company has reached a breaking point where new capital is required. The delay has caused significant distress among the residents who viewed the ship as their permanent home.

Benjamin Schatz, a retiree who has lived on the Odyssey for about a year, told CBS News he is in shock and denial. He was given only a few hours to pack and leave the ship on Wednesday. Schatz reported that some fellow residents now face homelessness with little money and no clear plan for their next steps. He said there are people on board who have very little money and do not know what they are going to do.

The company plans to proceed with the bankruptcy filing to restructure its debts. The vessel remains in port while the legal process begins. Passengers are currently in the process of disembarking or arranging their next travel plans. The next steps depend on the court approval of the Chapter 11 petition.