DeCurtis: Carnival moves to block Invictus’ ability to credit bid

By Sarah Lizee

Olympia, Wash., July 11 – Carnival Corp. is attempting to block or limit DeCurtis Holdings LLC lender Invictus Global Management, LLC’s ability to credit bid on the company’s assets, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As background, DeCurtis has been litigating against cruise operator Carnival, one of its prior clients, since April 2020. Invictus is a prepetition lender and debtor-in-possession lender to the company.

Carnival said that, to the extent there is value to be gained from a sale, Invictus should not be permitted to credit bid.

“Invictus called a default and forced the company into bankruptcy, and it then agreed to provide a DIP loan that was limited by design to keep the company afloat just long enough so that Invictus can ‘purchase’ debtors’ assets for a non-cash credit bid before dismissing the cases with no plan for any payment to the company’s true creditors,” Carnival said in the motion.

The transaction will result in nothing coming into the estate to pay creditors or to fund administrative expenses other than professional fees, Carnival said.

Carnival also said the debtors don’t intend to confirm a Chapter 11 plan, which would have required the payment of administrative expense claims and at least could have established a trust to pursue recovery actions and other claims for the benefit of general unsecured creditors.

Instead, the debtors plan for the cases to be dismissed, potentially leaving them administratively insolvent, and Carnival, the debtors’ prepetition professionals, experts, and other creditors who provided services to the debtors will be left with nothing, Carnival said.

The cruise operator said the assets “should not be gifted to the very party that destroyed the company,” at least not without Invictus putting up cash to facilitate a competitive auction process.

Orlando, Fla.-based DeCurtis provides guest experience and operational management product-focused SaaS software solutions. The company filed bankruptcy on April 30 under Chapter 11 case number 23-10548.

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