MV Odyssey Suspends Cruise as Fuel Costs Force Bankruptcy Plan

More than 200 passengers, mostly Americans, were left stranded in Cambodia after Florida-based Villa Vie Residences suspended operations of its luxury cruise ship MV Odyssey on Tuesday, October 27, 2026. The company attributed the shutdown to soaring fuel costs linked to the war with Iran and plans to file for Chapter 11 bankruptcy after running out of money while seeking financial support.

Chief Executive Officer Mikael Petterson told CBS News on Wednesday, October 28, that fuel prices had climbed sharply since the conflict began in late February. The vessel consumes between 700 and 800 tons of fuel each month, placing substantial pressure on the company's finances.

Petterson said the company had been paying an average of $700 per ton before the war. Prices subsequently rose to between $2,000 and $3,000 per ton, according to his account to CBS News.

"When you divide it over 300 people on board, it's just backbreaking. And this has been going on for nine months. We've tried to do everything we can do," Petterson told CBS News.

In a company statement, Villa Vie Residences said average monthly fuel expenses per cabin had increased from $1,800 before the conflict to between $6,000 and $8,000. Petterson said the operator chose not to transfer the additional costs to passengers.

The company attempted to reduce fuel consumption by slowing the ship and extending its stays at ports to five or six days. Petterson said the strategy was intended to give the conflict in the Middle East time to subside, but it did not resolve the financial strain.

Petterson described the scale of the company's rising expenses while explaining why it could no longer sustain operations.

"For us, when our monthly expenses go up from $400,000 to $2 million, where are we going to get the $1.6 million?" Petterson asked.

The company ran out of funds while searching for a financial partner. Petterson said it had borrowed money and delayed payroll expenses in an effort to keep the business operating, but additional capital had become essential.

"We've borrowed money, we've stretched our payrolls as far as we can, and we're at a point where it's just at a breaking point where we need capitalization," Petterson said.

The MV Odyssey began its continuous around-the-world voyage in October 2024. Villa Vie Residences offered customers the opportunity to purchase permanent cabins for several hundred thousand dollars, allowing them to live aboard the ship. Some passengers sold their homes to join the voyage, with the company offering a minimum 15-year residency guarantee.

Among those affected is retiree Benjamin Schatz, who had viewed the vessel as his permanent home. CBS News previously interviewed him in April 2025, when he had been living aboard for about a year. On Wednesday, he was given only a few hours to pack his belongings and leave.

Schatz described his reaction to the sudden disruption in an interview with CBS News.

"Honestly, right now, I'm in denial and in shock, and I'm heartbroken," Schatz told CBS News.

He also expressed concern about other passengers facing financial hardship and uncertainty over where to live after leaving the ship.

"There are people now who are homeless and who have very little money and don't know what they're going to do," Schatz said.