Riverboat company files for bankruptcy

Business Today

The American Queen, one of three paddlewheelers cruising the Mississippi and Ohio rivers, canceled its Nov. 16 scheduled stop in Cape Girardeau.

American Classic Voyages, which operates the Queens and other cruise vessels, has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in Wilmington, Del.

"The tragic events of Sept. 11 dealt a devastating blow to our business that has made it impossible to continue our full operations," said chief executive officer Phil Calian. "A Chapter 11 filing became the only alternative to us to preserve our present cash supply, improve our balance sheet and minimize the impact, as much as we are able, on affected passengers and other stockholders."

Of its Queens fleet, only the Delta Queen will continue to operate, the company said. The schedule for next year has not been set yet, said company spokesman Jim Lida.

The company notified the Cape Girardeau Convention and Visitors Bureau in mid-October that

the stop had been canceled.

The company, which includes paddlewheelers Delta Queen, American Queen and Mississippi Queen, has been based in New Orleans since 1985 when it moved from Cincinnati, Ohio.

Riverboats usually bring as many as 3,500 visitors to Cape Girardeau each year, a big boost to the historic downtown area. The Queens docked here eight times last summer.

Nationwide, the company is cutting 2,150 jobs, including about 450 office personnel and 1,700 employees who worked on its boats.