(Bloomberg) -- The notes of Norwegian cruise ship operator Hurtigruten Group AS tumbled on Tuesday, following the announcement of a police investigation into the company's handling of a Covid-19 outbreak on one of its vessels.
The Tromso-based firm's bonds were marked at a range between 74.5 and 80 cents on the euro on Tuesday, down from a mid-80s level last week, according to people familiar with the matter. Its term loan moved a point lower to be bid at 74 cents on the euro and offered at 79 cents, following a five-points loss on Monday.
The latest outbreak adds further pressure to an industry already battered by lockdown measures and travel curbs across the globe. Notes of Switzerland-based competitor MSC Cruises also dropped more than two cents on the Swiss franc on Monday.
Read more: Norwegian Cruise Line Hurtigruten Apologizes, Suspends Travel After New Coronavirus Outbreak
Hurtigruten, which is owned by private equity firm TDR, is testing all crew members on its Fridtjof Nansen and Spitsbergen vessels and offering tests to all passengers, it said in a statement on Tuesday. That comes after 36 employees and 5 passengers tested positive for Covid-19 on board the Roald Amundsen ship.
A police inquiry is now underway to determine if the company violated any laws relating to disease control.
“We are investigating if Hurtigruten as a company, or any individuals violated rules concerning disease control,” Lisa-Mari Ellingsen, prosecutor of Troms Police District, told Bloomberg News.
The company has already said it breached Norwegian coronavirus regulations, in particular regarding the quarantine of foreign crews working on its ships.
“We have made mistakes and we have failed in this case,” Hurtigruten's chief executive officer Daniel Skjeldam said in a statement late Monday.
The company did not immediately respond to further requests for comment on Tuesday.
“With Covid-19 potentially having spread on more than one of its ships, Hurtigruten will likely face challenges in persuading consumers that its cruises are safe even after sailings resume,” analysts from credit research firm Lucror wrote in a note on Tuesday.
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