Tag Archives: RMS Titanic Inc

Titanic Salvage Sale Appears Either Dead Or Looking For New Buyer

On 28 May, Premier Exhibitions put out its Full Year and Fourth Quarter 2013 Results. For Sale by Owner SignDeep down in the statement was the following:

Update on Titanic Monetization

As previously communicated, on October 15, 2012, the Company entered into a non-binding letter of intent with an entity representing a group of individuals (the “Consortium”) working to effect a purchase of the stock of RMS Titanic, Inc. Since entering into the LOI, Premier has been negotiating exclusively with this group. The entity with whom the Company is negotiating has been soliciting federal, state, and local government entities, as well as philanthropic contributions, to build support to go public with a broader campaign to secure capital necessary to complete a transaction. They continue to request confidentiality until they feel comfortable that there is sufficient support to go public with the project.

Due to the complexity of the transaction and the many elements that are necessary for consummation, the process has taken longer that Premier had hoped. While the Company continues discussions with this group, Premier also recognizes the uncertainty of their completing a transaction and obtaining funding commitments. The Board is therefore considering the full range of strategic and financial alternatives in this regard, which likely will include retaining an investment bank, and will pursue possible paths in parallel.

The complexity of these assets, and the need to comply with the underlying court orders, require that any transaction or arrangement be more carefully structured and executed than a typical transaction. Timing is certainly a factor, but it is not the only factor. The Board and management, together, remain committed to maximizing shareholder value.

This confirms some speculation about who this consortium might be, a group of investors trying to raise capital both with taxpayer money (that is where government money comes from) and private investors (rich people with lots of money like that guy with the hoodie who heads up a social network). You can guess the problem with raising this capital. Not only is the price astronomical, it comes with a major constraint: it stays under U.S. federal court jurisdiction because you are not allowed to sell off any portion of the collection. That means the court will be over your shoulder all the time wanting reports and details of the collection from what is being stored, how it is being carefully preserved, and when it is on display.

So the upshot of it is this: Premiere is formally notifying that they are looking for other interested parties. This may be the reason, according to Seeking Alpha that Premiere’s stock price has dropped. It dropped from $2.30 to $2.10 ion 28 May and dropped much further since. Premiere might consider appealing the judge’s decision to a higher court. And it is entirely possible down the road one of two things happening: the entire collection being shuttered until resolved or the U.S. government seizing it as a national/international treasure under some obscure international treaty or possibly use a congressional resolution passed years ago as the pretext.

Sources:

1. Failed Titanic Sale Won’t Sink Premier Exhibitions(18 June 2013,Seeking Alpha)

2. Premier Exhibitions Reports Full Year and Fourth Quarter 2013 Results (28 May 2013, Global Newswire-Press Release)


Titanic News for 13 Mar 2013

1. Anna Devine writing in Leavenworth Times about dogs aboard Titanic. One interesting story was that of Rigel, a labrador, who was helpful in getting Carpathia to stop. Rigel was swimming in the water ahead of a lifeboat and his barking alerted Rostron to stop his engines before hitting the lifeboat.

Source: Pet Talk: Hero Dog That Survived The Titanic(12 Mar 2013, Leavenworth Times)

2. RMS Titanic, Inc and Premier Exhibitions are suing Thomas Zaller, Imagine Exhibitions, Inc., and Imagine Exhibitions PTE, Ltd for ” conversion, contractual breach, unjust enrichment, fraud and fraudulent inducement, trade dress (Lanham Act), and misappropriation of trade secrets.” The suit, filed late last month in federal court in Atlanta, Georgia asserts Zeller stole intellectual property from its Titanic Exhibition in Singapore in 2011 to use in competing exhibitions in Macau and other places. Premiere seeks damages for the five counts alleged in its complaint. The complaint was filed on 26 Feb 2013 and Judge William Duffey has been assigned the case.

Source: Titanic Lawsuit Launched To Sink Competing Enterprise(8 Mar 2013, Lexology.com)


Titanic Jewels Ending In Atlanta;Orlando Next Stop

Titanic
(Photo courtesy George Behe)

“Jewels of Titanic” collection in Atlanta ends on 6 Jan 2013. It then travels to Orlando’s Titanic: The Experience opening on 11 Jan 2013. The collection will be on display until 12 Mar 2013. For information about hours and to purchase tickets, go to titanictheexperience.com. Admission to the collection is complementary when purchasing ticket for Titanic: The Experience.

Source: Orlando Attractions Magazine (blog), ‘Jewels of Titanic’ to be on display at Titanic: The Experience in January,
29 Dec 2012

 


Major Decision: Federal Judge Awards Title To Titanic Artifacts

The long awaited decision of Federal Judge Beach regarding title to Titanic artifacts has been rendered. Judge Beach granted RMS Titanic, Inc. title to fine china, ship fittings, and other artifacts recovered from the ship by the company. The condition is that the artifacts be preserved so the court will have to approve sales.

Sources:

1. The Virginian-Pilot, Norfolk Judge Awards Rights To Titanic Artifacts, 16 August 2011

2. Associated Press, Judge: Salvage Firm Has Title To Titanic Artifacts, 15 Aug 2011

 

Premier Exhibitions: Titanic Makes Money but Bodies Now RIP

Premier Exhibitions, which owns RMS Titanic Inc., and the touring Titanic exhibition, reported its third quarter fiscal results. According to the press release Titanic and other exhibitions made a “gross profit margin of $1.9 million for the quarter and $10.2 million for the nine months ended November 30, 2010.” However the Bodies portion of the business experienced a loss of $2.3 million in the third quarter. The press release states:

“Having identified the main area of challenge within our business, we have decided to discontinue any further self-operated touring Bodies exhibitions, which will materially lessen our financial exposure. We will reduce our inventory of specimens and cut the fixed license costs by $4 million annually.”

Perhaps a main reason for the Bodies losing money is the ongoing controversy about how those “specimens” are acquired for public display. Some argue that the “specimens” coming from China are former prisoners, dissidents, and others who did not voluntarily will their remains for public display. Now that Premier is discontinuing the exhibition, what will happen to those specimens?

Source: The Street, Premier Exhibitions Reports Fiscal 2011 Third Quarter Results, 11 Jan 2011

Titanic Musings

Sorry folks for not posting in a while. Things have been somewhat hectic lately.

1) On the auction front, there has been some interesting items that sold. An affidavit signed by Titanic survivor Laura Francatelli fetched $31,937. A poster of Titanic from 1912 sold for $95,792.

2) Titanic:The Artifact Exhibition is coming to London’s 02 Arena starting on 2 Nov 2010.

3) Despite criticism from some quarters, reports indicate that bookings for the Titanic 2012 cruises are filling up.

4) Blast from the past: From press reports it appears the owners of Deepwater Horizon, the rig involved in the recent oil spill in the Gulf of Mexico, plan to use the same liability law that Titanic’s owners did in 1912. The Limitation of Liability Act limits the liability of the owner of a vessel to the value of its interest in the vessel at the end of the voyage. In 1912 this law was used by the owners to limit their liability to just under $92,000 (the value of surviving lifeboats and equipment). Thus claims made against White Star were limited to that amount no matter the actual value of the loss.

5) The recent Titanic 2 movie was exactly as predicted. It came out and sank quickly.

6) Ghostly Titanic? Every year I learn of some Titanic connected ghost story. Personally the one that makes the grade is from Ghostbusters II when Titanic docks and its passengers (all ghosts) disembark!

7) Your hear strange things on the Internet. Someone out there claimed that the salvage award was not done in the right court of law or that the judge was the wrong one. In the United States, federal courts have original jurisdiction on all admiralty and maritime cases. And judges that hear those cases are federal not state judges. Sometimes federal judges are referred to as district judges. Since federal courts are judicial districts, a federal judge can also be referred to as a federal district judge.

While people can disagree on whether salvage of Titanic was right or wrong, RMS Titanic Inc (RMST) did follow correct procedure by going to a U.S. federal court to get a salvage award. Since they had items in their possession which came from Titanic, this allowed the court (under recognized salvage law) to gain jurisdiction. The original decision, with modifications made by an appeals court, has been upheld. Just because Titanic was flying the Union Jack in 1912 does not confer immunity from salvage as some might claim. Salvage law allows for this to happen since it presumes salvage is done on behalf of the owner.

Titanic Musings

Titanic Musings And Other Things

I took a break for a needed vacation and catching up on Titanic news and recordings in my DVR.

1) The Grand Expedition
Call the press, contact cable and network shows for booking, and get lots of video coverage about the sorry state of a wreck two miles down. We will fill the ship with historians, scientists, and other interesting people to comment on the state of the wreck. Get that? It is about the decay rate of the wreck as if we did not know already that nature is consuming the wreck. Sure there is scientific interest in finding out the decay rate, how organisms two miles down operate, and lots of other technical stuff. If that was it was about, it would be a special edition of National Geographic Explorer. If they wanted zing, bring any or all of the following from the Travel Channel: Anthony Bourdain, Andrew Zimmern, Samantha Brown, and the guy who yells. Otherwise I suspect it is a yawner and just to create positive buzz for Premiere Exhibitions and its subsidiary, RMS Titanic Inc perhaps because.…

2) Salvage Verdict Comes Down in Their Favor
What wonderful coincidence! Federal Judge Rebecca Beach Smith finally issues after what seems a millennia, her ruling on the salvage award. Issued just before the Grand Expedition, she rules they are entitled to compensation and sets the value of the artifacts at $110 million. What is left to be determined is how they will get compensated The easiest–and most controversial–would be to give them the artifacts. RMS Titanic, Inc would then be free to sell the artifacts to museums, collectors and other interested parties. The predictable howl from the anti-salvage crowd will be loud if this occurs. Long ago the pro and anti salvage crowd on the Internet got into heated flamewars resulting in Titanic enthusiasts hating each other. It split the Titanic community into rival camps and still does when the topic comes up. One the other hand, Judge Smith could award them the artifacts on the condition they only be sold to museums and recognized exhibitors. The other option is for the court to hold the sale and distribute the proceeds.

There are lots of legal issues that have to be worked out and that will take time. It is also possible others will file appeals to overturn the decision or seek the court to modify its decision in some way. Stay tuned!

3) Titanic Cliche Overload
Far too many politicians, commentators, and others use the Titanic Cliche so much as make one wonder if they ever attended a literature or writing class.

4) Top Chef Washington is Top Chef Boring
Who stole the pea puree? Okay think about that for a second. If the most exciting thing on this show is whether or not a cheftestant stole a pea puree, we have a problem. It seems no one liked this chap very much and quickly labeled him a thief. It became clear that when Kevin, Kenny, Kelly and Amanda were the losing team in Restaurant War when Kenny opened his mouth complaining that Alex did nothing (though on the winning team). It looked petty and foolish considering what the judges told them. Kevin’s dish was excellent, Kenny did two dishes that failed, Kelly did a watery soup they disliked but saved herself on dessert, and Amanda botched cooking the beef. All in all pretty bad. Kenny’s goat cheese dessert was reviled by the judges (Frank Bruni’s look when he tasted it was classic). Kenny got the boot since as executive chef he was in charge, put out two bad dishes, and allowed other bad dishes to go out.

For the most part this show is forgettable and looks tired. From reading the various postings elsewhere, this season is not generating that much great buzz despite being in Washington D.C. Last season saw some great cooking and really top notch competitors. This season seems to have lackluster (by comparison to previous seasons excluding Season Two which was pretty bad) cheftestants and no one really to get interested in winning. More interested in watching who screws up and place bets on who goes home each week. Otherwise watching repeats of Mythbusters is better, funny, and educational all at the same time (and yes they have tackled some food myths along the way).

5) Titanic 2
Yes, it is true that there is a movie by that name. Suffice to say it has gone straight to the bottom as predicted. They ought to have made it high camp instead or turned it soft porn with Pamela Anderson bouncing about.

6) A Titanic Christmas
Two words that ought not go together: Titanic and Christmas. One is a terrible tragedy and the other a religious celebration. So when a press release was sent out over the web (alas I did not get it being a lowly blogger) announcing a Titanic themed Christmas in Pigeon Forge, I wondered if it was a spoof. Not so it seems. According to the release:

“Christmas in a Winter Wonderland” runs November 13-January 1, 2011. Co-owner, Mary Kellogg-Joslyn plans to pull out all the stops to make her Titanic’s first holidays in Pigeon Forge, memorable. First, there will be $150,00 in snow equipment (the same equipment used to make it show every Christmas at Walt Disney World’s Magic Kingdom). Secondly, $100,000 will be spent on Christmas trees, holiday lights and ornamentation throughout the interior and exterior of the museum. There will also be carolers and other musical events. While the holiday celebration will be elaborate, the owners plan to hold true to their idea of the importance of telling the stories of the Titanic’s passengers and crew.”

Some will criticize it but in the end the consumer will decide whether the gamble pays off or not.

7) Dodgeball with a Twist
One of the funny things about Warehouse 13 on SyFy is that they can have some ordinary objects become dangerous. Take the dodgeball. Normally you try to knock the opponents out of the game by hitting them with the ball. Pete and Myka encounter a dodgeball that multiplies on contact. Meaning if it strikes you one becomes two. Then two becomes three and so on. One can see the obvious problem here. In minutes you could have a dozen or so balls hurling towards you and increasing in numbers after contact. It is never said but it is a nod to the most famous of all such things, the tribble from Star Trek. It multiplies quickly if lots of food is around and nothing checks it (we did learn in Enterprise they do have a predator). A nice nod to the Trouble With Tribbles from Warehouse 13.