It appears plans to retrieve the Marconi wireless radio from Titanic are in jeopardy. Due to Covid-19 closing many of their exhibitions (and only a few open with limited availability), income for Premier Exhibitions has dropped significantly. Premier has already missed a required court deadline about submitting costs for the proposed salvage.
The company, RMS Titanic Inc., said Monday that its revenues plummeted after coronavirus restrictions closed its exhibits of Titanic artifacts, causing the firm to seek funding through its parent company. Some of the exhibitions, which are scattered across the country, are still closed, while others that have reopened are seeing limited attendance. RMS Titanic Inc. recently missed a deadline with a federal admiralty court in Virginia to submit a funding plan for the radio expedition. The company left open the possibility that it may no longer seek the court’s approval for the undertaking if a plan isn’t submitted in the coming weeks.
The BBC is reporting that the bid by a consortium of museums (Royal Museums Greenwich,National Museums Northern Ireland,Titanic Belfast and Titanic Foundation Limited and others)has been outbid by a hedge fund consortium that bid $19.5 million for the collection. The head of the National Museums of Northern Ireland (NMNI) said that they had not given up hope of bringing the collection to Northern Ireland. While it is not clear whether they can raise additional money, they will stress that selling to them will keep the collection in public ownership. One Titanic expert, Professor John William Foster disagrees.
Foster states: “What happened to Titanic after she left Belfast is, in a sense, none of Belfast’s business,” he said. “As this exhibition circulates the globe, we get a lot of publicity from this, and it’s good publicity – not the publicity from the Troubles, so I’d be keen to see these artefacts keep going around the world.”
Source: Titanic: Museum bid to bring artefacts to Belfast fails (BBC,22 Sept 2018)
1.Pocket Watch From Titanic Victim Sold For $57,500 (Smithsonian,29 Aug 2018) On April 15, 1912, Sinai Kantor was among the more than 1,500 people who lost their lives when the Titanic plunged into the North Atlantic. Recovery workers later pulled his body from the ocean and found a number of items that had been on his person when he died. One of those items, a pocket watch marked with Hebrew letters, recently sold at auction for $57,500, reports the Associated Press. John Miottel, owner of the private Miottel Museum in California, purchased the watch at auction. He already owns a number of timepieces that belonged to Titanic victims, including John Jacob Astor IV, the financier who helped build the Waldorf-Astoria hotel, and Oscar Woody, the Titanic’s U.S. Postal Clerk.
2. Bankrupt Titanic Exhibitor Sets Biggest Sale of Ship Relics (Bloomberg, 30 Aug 2018)
This story, as predicted, is getting more heated now. To sum up: the current owner is bankrupt and wants to sell its most prized possession of all-the historic Titanic artifact collection. In the past getting anyone to put up the money was so difficult–due to constrictions imposed on the salvage award–that no one could afford purchasing it as one set. The article indicates three possible bidders:
1. Daoping Bao, has proposed a plan backed by a bevy of investment funds and Chinese businessmen who have bought $2 million of the company’s debt. Among Bao’s backers are Hong Kong-based PacBridge Capital Partners Ltd. and U.S.-based Apollo Global Management. Bao’s group is pledging to keep the collection intact and within reach of U.S. courts while planning to ramp up scientific and tourist expeditions to the wreck. Bao’s group raised their bid to $19.5 million
2. Titanic Branson
The owners of Titanic Branson and Titanic Pigeon Forge would like to purchase it and have made an offer in the past of $5-10 million that was turned down.
3. James Cameron & Museums: Cameron and a group of museums are offering $19.2 million.
As I suspected earlier, the Chinese are putting up a lot of money so they can move this to their theme park in China where a Titanic replica will be built. Make no mistake on this one, serious money is being put on the table. The downside is that once they are out of the U.S., there is no guarantee they will abide by the salvage award requirements. They claim they will keep it in U.S. but most are not sure they will do this. The bids from the Pigeon Forge and Cameron group is serious as well and both would likely keep the collection together.
And it is still possible that the bankruptcy court could conclude the easiest path is to auction off the pieces and pay off the debt rather than deal with the bids. The Bao group has put down a cash deposit to show they are serious. It is also possible that the government could step in to prevent its sale to Bao. That would leave the other two players. Certainly the Cameron group has museums behind him that know a lot about conserving artifacts. As for Pigeon Forge, they could end up getting it if the court is uncertain of the other two bids and wants to keep it right here in the U.S.
The Wall Street Journal is reporting that a equity holders and lenders behind Premier Exhibitions have made a $17.5 million offer to acquire the company. The entities involved are PacBridge Capital Partners Ltd., as well as funds affiliated with Apollo Global Management LLC and Alta Fundamental Advisers LLC and other equity holders as well. The papers were filed with the court on 15 June 2018. According to the Wall Street Journal:
The prospective buyers will hold the sale process open to other qualified bidders, with Aug. 8 as the proposed bid deadline. If other interested bidders come forward, an auction would be held on Aug. 13.
This is a very interesting turn of events. Up till now all attempts to sell the artifacts have failed to materialize (including the more recent famous one by James Cameron). Whether this will bear fruit or wither on the vine remains to be seen. You can view the document here.
Source:Titanic Artifacts May Soon Join Apollo, Alta Portfolios (Wall Street Journal, 20 June 2018)
Premier Exhibitions Update-On May 25, 2018 the Bankruptcy Court granted the Equity Committee legal standing to pursue claims against current and former officers and directors of Premier Exhibitions. In short it means they have the ability to demand they pay damages to help reduce the outstanding debts of the company. Since they have retained counsel, it means they expect it will result in litigation to determine whether they are liable and if so, how much they will have to pay.
View original document here.
View materials on the case here.
New Details on Secret Navy Mission Where Titanic Was Found-Some years ago it was revealed Titanic was discovered as part of a secret Navy mission that Ballard was on. He was sent on a mission to try to find out how two U.S. nuclear submarines had sunk. Using new submersible technology Ballard found those wrecks and the approximate location of Titanic. The National Geographic Museum in Washington D.C. reveals more of the details of that secret mission. “Titanic: The Untold Story” delves into the many details that have not been publicly revealed until now.
In 1985, Ballard’s mission was to dive to depths of 9,800 feet using a towed camera system called Argo to find and document the imploded remains of the Scorpion. The objective of the mission was to locate the submarine’s nuclear reactor and nuclear weapons and to gain evidence to help determine what led to her loss. After concluding his successful investigations of the Scorpion, Ballard used the final 12 days of his expedition to discover the RMS Titanic at a depth of 12,540 feet. The following year, while the public was enthralled and distracted by the discovery of the Titanic, Ballard returned on a second classified mission to the Thresher and Scorpion.
Visitors will view artifacts, materials and photographs from the U.S. Navy Archives, and see the submersible Alvin that dived to Titanic. They will also see a variety of Titanic related artifacts from the National Archives and movie memorabilia from 20th Century Fox.
According to Richmond News, Titanic:The Artifact Exhibition will be at the Lipont Centre in Richmond, Canada from 23 June 2018-11 Jan 2019. The newspaper reports that that Lipont was selected because of its spaciousness and convenient location. Toni McAfee, executive director of Lipont Centre, told the newspaper: “At Lipont Place the Titanic exhibition will find a natural home allowing both the venue and the exhibition to make their debut in Metro Vancouver,” says McAfee. “We look forward to welcoming all visitors, local and international, to the magnificent space and this world-class exhibition.”
The mediator appointed in the Premier bankruptcy proceedings has filed a report with the court. The report states in part:
Significant progress was made in reaching agreement among a number of the parties on a path for exiting the Chapter 11 cases. However, certain of the parties are continuing their dialogue in an effort to reach closure on some important remaining issues. The parties have requested the mediator to maintain the confidentiality of the nature and extent of settlement until the finalization of agreements between some or all of the parties, particularly in light of the fact that equity securities of Premier Exhibitions, Inc. are publicly traded.
Titanic Hotel’ In London With Same Dining Room As The Fateful Ship Reopens After £85M Makeover (The Sun, 16 Feb 2018) IT’S been 106 years since the Titanic sunk after striking an iceberg in the Atlantic Ocean. And now a hotel with strong links to the tragedy is due to reopen after a huge £85 million refurbishment – a day after the anniversary of the sinking of the ship.The former Hotel Russell in London’s Bloomsbury has been renamed Principal London, and reopens its doors on on April 16. The Grade II listed building was designed by Charles Fitzroy Doll in 1898, and the ornate dining room on board the Titanic, also designed by him, is said to be a replica of the hotel’s. Several passengers on the ship also stayed at the hotel before they set sail on the Titanic from Southampton. There’s also a bronze dragon in the hotel that’s the twin of one that went down on the ship.
Titanic Costume Exhibit Woven Into Vanderbilt Family History At Biltmore(16 Feb 2017,Citizen Times) With its new exhibition of costumes from the movie “Titanic,” Biltmore brings its costume shows back from England and Europe and lands its guests squarely in America. It’s an emotional homecoming that’s deeply personal for Biltmore’s founder. After all, George Vanderbilt had tickets on the Titanic for himself and his wife, Edith, in early 1912. “We have it in writing,” notes Biltmore associate curator Lauren Henry. “It’s not a legend, it’s a fact that Mr. and Mrs. Vanderbilt were booked to be on Titanic.”
Clerkenwell Titanic Victim Signed On The Day Liner Left(Islington Tribune, 16 Feb 2018) Among them was Everett Edward Elliott, who lived in Wilmington Street, Clerkenwell. At only 24 years of age, he signed on as a trimmer on April 10, 1912, on the morning the Titanic left Southampton. His body, recovered by rescue ship Mackay-Bennett, lies in Halifax municipal cemetery.
Premier Exhibitions Bankruptcy Mediator Sought(Bankrupt Company News,16 Feb 2018) Premier Exhibitions and its official committees of equity security holders and unsecured creditors filed with the U.S. Bankruptcy Court a joint motion for appointment of mediator and to schedule mediation. The motion explains, “The Parties believe it is in the best interest of the estate to mediate any and all matters arising out of or related to the Plan or any other restructuring or liquidating plan, any restructuring and liquidation options and alternatives, the sale of the Debtors’ assets, and any related issues that the Parties agree to mediate. The Parties believe that mediation will help avoid a prolonged confirmation fight among them.”
The Titanic Museum Hosts Secret Dinner Parties You’ve Got To See To Believe(15 Feb 2018, Delish) It’s a striking sight, for sure, but then again, just beyond it is a massive castle, an inn where it’s Christmas year-round, and a towering King Kong climbing a cartoonish copy of the Empire State Building. No, I’m not tripping. This is Pigeon Forge, TN, home to Dollywood, wax museums, and every kind of tourist attraction imaginable — but I’ve got my sights set on the unsinkable ship that, tragically, sank more than 100 years ago. There’s a secret dining room inside that serves a three-course meal worthy of the White Star Line, but only for groups of 35 or more.
The saga of the Premier Exhibitions bankruptcy has taken another turn. An auction that was set for February 6 has been canceled. According to the press release, the reason given is to discuss further with stakeholders the best path forward. However a new twist has emerged that prompted to cancel.The National Maritime Museum of Greenwich has filed a motion to move the action to the federal court in Virginia where the salvage award was made. Another group called the Ad Hoc Equity group is also filed a motion objecting to the sale.
Until the motions are heard and decided upon, Premier decided to withdraw the sale. The first motion by the National Maritime Museum is the most serious of them. They are trying to argue that due to the special and unique nature of Premier holding Titanic artifacts in which a salvage award was made by another federal court that it ought to have primary jurisdiction in this case. The objection to that is that court is not bankruptcy and has no business handling such matters. Bankruptcy is very different from salvage with its own laws and procedures. This motion will chew up lots of time and depending on how the decision comes down, drag this into the appeals court.
The other possibility is that those in charge will throw up their hands, declare they cannot reorganize under these circumstances, and go into Chapter 7. Which means complete liquidation of the company and selling all assets to pay creditors and stakeholders.
Not a Happy Christmas for Premier shareholders hoping for some return on equity in the near future.
According to a press release issued by Premier, the company has proposed February 6, 2018 as the auction date of company assets. This sale, subject to court approval, will allow bidders to purchase the company or its assets. Included in this auction are Titanic artifacts. However the company maintains the right to designate a stalking horse bidder before the auction deadline.