A cruise ship company in Kobe, Japan, filed for bankruptcy blaming the coronavirus outbreak. It is reported that although the company had been struggling from the past, the coronavirus crisis led to the company filing for protection from creditors under the corporate rehabilitation law.
Specifically, Luminous Cruising Co. issued a statement according to which customer cancellations, led by coronavirus fears, seriously impacted the company.
The company was already dealing with financial obstacles due to disruptions caused by a series of natural disasters that affected the region in 2018. In the meantime, increase in fuel prices was also another challenge for the company.
Luminous Cruising commented that they will “start corporate rehabilitation processes because it would for sure cause great trouble to creditors if we leave this status quo unattended.”
In addition, the company collaborated with Tokyo-based First Pacific Capital Ltd., which operates the cruise ship Kobe Concerto, to help rehabilitate Luminous Cruising. Passengers who booked trips on the Luminous Kobe-2 will be offered trips on the Kobe Concerto instead.
