Storylines Secures $500M Guarantee; Second Shipyard, Refunds in Focus

Storylines Secures $500M Guarantee; Second Shipyard, Refunds in Focus

Storylines is nearing the completion of a restructuring and recapitalization process that has secured the company access to a $500 million cash-backed bank guarantee, according to CEO and Co-Founder Alister Punton who also addressed pending resident refunds in a video update and confirmed the company is working with a secondary shipyard as a future-proofing and geopolitical backup for its purpose-built vessel, the Narrative.

Launched in 2018, the company aims to offer a residence cruise ship concept onboard the Narrative, previously having switched from a business plan that called for the acquisition of a secondhand ship.

In 2022, the startup announced it had ordered the 1,250-passenger ship from the Brodosplit Shipyard in Croatia and had targeted a start up date of 2025.

In the company’s recent update, Punton said that, in addition to restructuring itself, Storylines is “fully focused on bringing funding together.”

He said that the company is working on recapitalizing as part of a go-shop notice that it has put out, as that the process took longer than anticipated.

“It took a whole lot more work than I anticipated, not only for myself but very much for the legal counsel who has been working around the clock to expedite that and get that done,” Punton said.

With work now in the final stages, the process is expected to be completed soon, he continued, noting that Storylines will then be able to move on to step two of its recapitalization plan.

“This consists of closing on the balance of the funding, which this new partner will be able to achieve for us.”

At their request, the investors will not be revealed until “all goes through,” Punton said, adding that the partnership has already given the company instant access to “some incredible networks and hospitality brands.”

He added that Storylines now has access to a $500 million cash-backed bank guarantee, noting that the company is working to secure a facility to monetize this guarantee.

“We have a couple of options looming over that for the moment, and we’ll keep you posted as that progresses,” Punton continued.

He also mentioned that the entire project is wrapped in insurance with one of the largest insurance groups in the world.

“That, combined with the refund guarantees provided by the shipyard, means we have all of the pieces of the puzzle together now,” Punton added.

“Thank you to those who have been very patient in all of this. That hasn’t gone unnoticed,” he added.

Punton also addressed client refunds, saying that he has limited time to answer repeated emails about the subject.

“For those waiting on refunds outside of the trust account, I just ask that you hold on a little bit longer,” he said, underlining that he was referring primarily to $10,000 refundable deposits.

These amounts will be released once the company goes through its restructuring process, which will either free up or bring more capital to it, he explained.

Passengers who are short on refunds from the mentioned trust account will be contacted by Storylines to start a process that will see the balances returned as well, Punton continued.

He also noted that, earlier this year, Storylines decided to remove all but the core operations and construction teams.

“They were being stood down, so we made the decision to preserve capital and also in preparation for this restructuring process,” he explained, adding that the company’s communications have been more sporadic as a result.

The company has also been working with the shipyard, having completed the hull design of the Narrative through tank testing in Holland.

“By all accounts it was a success; there were a few minor changes that we made, but nothing out of the ordinary that you wouldn’t normally expect,” Punton said.

Storylines is also working with a secondary yard as a future-proofing scenario and geopolitical backup, he added.