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Bailout could exclude Carnival, Norwegian, Royal Caribbean cruise lines

Trade News by Trade News
March 26, 2020
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Bailout could exclude Carnival, Norwegian, Royal Caribbean cruise lines
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Cruise lines are among the businesses that have suffered the most fallout from the coronavirus outbreak. And the major ones could get left out of the bailout fund included in the $2 trillion stimulus bill the Senate passed Wednesday night.

The bill allocates $500 billion to distressed businesses that can apply for loans or guarantees from a fund overseen by Treasury Secretary Steven Mnuchin. To be eligible for that relief, however, a company must be “created or organized in the United States or under the laws of the United States” and “have significant operations in and a majority of its employees based in the United States.”

Several major cruise lines, however, are not incorporated in America. Carnival, for example, is incorporated in Panama, although it has a U.S. entity and a headquarters in Miami. Its shares trade on the New York Stock Exchange. Cruise lines also typically employ many foreign workers on their ships, who can be exempt from U.S. minimum wage requirements. 

As of…



Source cnbc.com

Tags: bailoutCaribbeanCarnivalcruiseexcludelinesNorwegianroyal
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