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Cruise ships repossessed
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September 14, 2000: 10:00 p.m. ET
Vacationers flown home after cruise company forced to shut down
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NEW YORK (CNNfn) - About 2,800 passengers on the Big Red Boats and other Premier Cruise Lines luxury liners had their vacations cut short Thursday when financial problems forced the company to shut down.
The company's mortgage holder, New York-based Donaldson, Lufkin and Jenrette (DLJ: Research, Estimates), repossessed the ships in ports outside the United States. Four ships were seized; a fifth ship used by Premier on a charter basis was also out of service.
Premier President Bruce Nierenberg said the ships were taken to international ports so that DLJ can sell them. He said passengers were being flown home from Halifax, Nova Scotia, and Cozumel, Mexico, at the investment bank's expense.
"They (DLJ) were the first mortgagers on the ships and they've been involved in the company for some time," said Nierenberg. He said DLJ went through "the normal legal channels."
DLJ spokeswoman Catherine Conroy said the bank decided to act after hearing that "several parties" were maneuvering to seize the ships.
"We decided to act quickly in the passengers' best interests," she said.
Returning to the airport in Orlando, Fla. after her cruise to the Bahamas was cut short, passenger Tania Carter said she was "very upset" with Premier.
"Last night after the comedy show, we found out the boat had been repossessed. They gave us plane tickets and let us come home," Carter said. 
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