Cruises - Deilmann Sisters Receive Prison Sentence

June 17, 2016 the Deilmann sisters, Gisa and Hedda, recieved aprison sentence of two years and nine months without parole, according to the court PR.

This sentence can reportedly be appealed.
by Earl of Cruise

The DEUTSCHLAND was the last ocean going, international passenger vessel flying the German flag.

DEUTSCHLAND in Travemünde,Oct, 10th 2006 - © Gerd Wüsthoff

The sentence was given for attempted tax evasion of € 430tsd and false statements they and their mother made during the bankruptcy proceedings of PETER DEILMANN REEDEREI cruise company. Their mother got a sentence of one year and nine month with parole.

Just month prior to the bancrupcy, € 23mio in cash got "lost" according to the accounting papers I have seen from the liquidating manager, installed by the court. He tryed finding an investor for the company PETER DEILMANN REEDEREI and the DEUTSCHLAND as a package.

DEUTSCHLAND in Salaverry Peru - © Deilmann

The family-owned German cruise line, which the Deilmann sisters took over after their father passed in 2003, declared bankruptcy in 2010.

Prior to that the sisters tried to get a new second vessel, the project RUBIN, which their father once developed, into the water. When in discussion with potential partners, the sisters refused a joint venture, where they would have to accept a 51% new co-owner, with not only a second ship, but with the prospect of a growing fleet.

The company was back then still well regarded amoung their passengers and was known as the location of the ZDF TV feature `Das Traumschiff´. Which was Deilmann´s biggest marketing tool. And a number of passengers booked especially tours onboard the DEUTSCHLAND when the film production crew and the TV stars had been on borad fiming.

During a visit back in 2006 I heard the voice of an angry crewmember, while entering via the the passengers gate: "This company never ever again!" Later that day I knew why. The crew quarters have been a mess of pourly maintained "stables". Above it was all the 1920ties glitter and glamour, but behind the cutains - dust and rust.

The DEUTSCHLAND was "loaded" with a loan of € 65mio from the DEUTSCHE SCHIFFAHRTS BANK, a subsidiary of DEUTSCHE BANK.

The new owner which stepped in, has been the German fonds company AURELIUS. They generated within 24h a placement of shares of about € 70mio. They bought the ship and the company. During the following restructuring, employees in Neustadt have been sacked, most those who knew how to sell the cruises ... And within a fourtnigth they put in their costs and some other numbers which rose the depts to a new hight of € 45mio. These went into the account of AURELIUS.

The Deilmann sisters still hold some 5% of shares during these days.

AURELIUS resigned and did look for another investor to get rid of its mess they created. We all remember the reflagging discussion during the OLYMPIC games in London. This was a last blow.

A ship named DEUTSCHLAND flying a foreign flag of convinience and serving the German market? A marketing blow. Negativ press reactions. Further resigments of employees, amoung them managers. Passengers numbers declined rappidly.

Now AURELIUS sold the entity to CALLISTA. This new established fonds company had placed only one deal in the industry. A knowledge of tourism - definitely a now, as with AURELIUS. Andthey made the same deal as the previous fonds company. Creating a new fonds of € 60mio, which was sold "to stupid German money" ... Those investors now bought again the dream to be owner of the TRAUMSCHIFF ...

How lucky they have been. I have heard some of their voices: "The best investment than ever!"

CALLISTA came up with a rebuilding idea. The DEUTSCHLAND registered for 575 passengers, sailing with only 520 passengers maximum, as only feasable, and without balconies, in desperate need of maintenance, upgrading and refurbishing, should be boosted to 620 passengers. New cabins should be added and french balconies should installed.

The indoor pool still rusted away, because of a failed ventilation system there. The neccessary classification was somehow behind their horizon.

CALLISTA was not able to pay the rebuilding, as they went in the deal on the same track as AURELIUS. They paid the previous owner and put their new depts into the company and ship - now the depts rose to a mere of € 70mio. As security the vessel. But the vessel was only a mere of € 15mio at this time. I have the evidence from an inspector of a potential investor, who looked for buying the vessel and company.

The new owners sacked again employees and engaged people who had no idea of what they had to do, but got bigger salaries as even the Deilmann sisters, who now had no longer shares in the company.

Passenger numbers declined further and even the televison deal with ZDF was on peril. Arrogantly behaving they raced into a financial catastrophy.

When loans and wages could no longer be payed, as maintenance costs, and a former docking, the vessel was seized during a cruise.

Within hours CALLISTA declared bancrupcy for Reederei Deilmann. A court put installed a lawyer as new CEO and liquidator which begann again looking for an investor.

During this process CALLISTA went around as if they had it all in their hands, and approached different financing parties, consulters, investment companies and cruise industry members and offered the company and ship for sale on their behalf. Luckily they could be stoped, but caused great turbulences with their acting and price idea. And to top it all, they wanted still to be part of the mess they created at least.

My interested investment partners steped back as of the price asked for the vessel and the company, even when they wished to restablish the once bright company and the product DEUTSCHLAND. They wanted further adding a second vessel, second hand, and had been keen for a newbuilding.

The liquidator found a new investor in the USA who bought the vessel and chartered it out to UNIVERSITY AT SEA who named her WORLD ODYSSEY. He paid reported $ 21mio for a vessel worth only € 8mio back then. He had to make huge investments making her SOLAS compliant again. The company Reederei Deilmann was liquidated.

WORLD ODYSSEY, ex DEUTSCHLAND in Kiel, Lindenau Werft - source: Wikipedia

The problem with the SEMESTER AT SEA charter is, the vessel is not needed the whole year round. So the new owner was looking for a second charter party which is covering up his revenue for the vessel. He found the German tour operator PHOENIX REISEN. They will send ms DEUTSCHLAND for PHOENIX REISEN in the summer over the seas.

To me, I am not a nationalistic ... it is a joke that as vessel named DEUTSCHLAND is homeported in Nassau, Bahamas, a state far away from Germany, and flying a flag of convinience.

DEUTSCHLAND, with the new installed French Balconies in Tallinn Bay - source: Wikipedia

A big question is if the fonds companies will see the cort. As they both gave each a false paper to the securing and in their respective money deals engaged banks which declared a worth of € 100mio of the DEUTSCHLAND. The inspector who "produced" the paper for AURELIUS in first place may get his own trial ... As this paper is one of the reasons why the investors did their investments. A number of these AURELIUS and CALLISTA fonds investors have made their claims at courts in Germany.

https://www.schiffe-und-kreuzfahrten.de/deilmann/deilmann-zwillinge-muessen-ins-gefaengnis-ohne-bewaehrung/93889/

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