American Classic Seeks Bankruptcy Protection

American Classic Voyages Co., a cruise ship company controlled by billionaire Sam Zell, sought bankruptcy protection after customers canceled trips after the Sept. 11 terrorist attacks.

Cruise bookings fell 50% after the attacks on the World Trade Center and the Pentagon and cancellations increased 30%, the company said in a statement. American Classic follows Renaissance Cruises Inc., which filed for bankruptcy Sept. 25.

American Classic listed assets of $37.4 million and debts of $452.8 million in a Chapter 11 filing in U.S. Bankruptcy Court in Delaware.

The company is the largest U.S.-flagged cruise line, operating seven crewed vessels with 3,480 passenger berths.

American Classic will cease operation of its Hawaii vessels today and will shut down four of the company’s five Delta Queen vessels during the next three days. Only the Delta Queen Steamboat, a national historic landmark flagship, will continue to operate.

In June, the company cut about 15% of its 470 full-time onshore jobs to reduce costs as the economy slowed. It also agreed to settle regulatory charges that it understated losses on its quarterly financial report in 1999.

American Classic shares fell 27 cents to 46 cents on Nasdaq.