Star gets old liner

Norwegian Cruise Lines (NCL) has transferred a veteran transatlantic liner to Malaysia's Star Cruises, it said Tuesday.

The Miami-based cruiseship operator says it signed off on the transfer of the 1,926-passenger United States (built 1952) in June as part of a 2007 agreement with Star connected to the sale of half of NCL to Apollo Management.

Under the same agreement, NCL transferred the 2,002-berth Norwegian Sky (built 1999) to Star in January and chartered the vessel until 2010.

NCL said in a quarterly report to the US Securities and Exchange Commission (SEC) that the United States deal reduces its property, equipment, and paid-in capital by $15m.

The United States was the fastest-ever conventional passengership when it was built, but it has been out of service since 1969. It is mothballed in the Delaware River.

NCL saved the United States from near-certain scrapping when it bought the ship in 2003 for use in its US-flag operation.

But in February TradeWinds reported that the company admitted that there was little chance the vessel would return to service and was reviewing its options.

Also in its SEC report Tuesday, NCL also says that a group of crew members has sued it in federal court alleging inappropriate deduction of wages and wrongful termination.

"We believe that we have meritorious defences to these claims and, accordingly, are defending vigorously this action and are not able at this time to estimate the impact of these proceedings," NCL said.

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