Villa Vie Residences to file for Chapter 11 after fuel costs quadruple

Villa Vie Residences, the Florida-based company that operates the MV Odyssey, plans to file for Chapter 11 bankruptcy. The filing will occur after the ship suspended its continuous around-the-world voyage on Tuesday. More than 200 passengers, mostly American residents, were left on board when the operator ran out of funds.

CEO Mikael Petterson attributed the financial collapse to a surge in fuel prices caused by the war with Iran. Before the conflict began in late February, the company paid an average of $700 per ton for fuel. That cost has since risen to between $2,000 and $3,000 per ton. The Odyssey consumes between 700 and 800 tons of fuel each month.

Petterson said the company attempted to manage the crisis by slowing the itinerary and spending five to six days in each port. He noted that monthly expenses climbed from $400,000 to $2 million. The company did not pass these increased costs to passengers, who had purchased permanent cabins for several hundred thousand dollars.

The Odyssey launched in October 2024 with a promise of a 15-year minimum residency guarantee. Passengers were expected to live on the ship indefinitely. Some sold their homes to finance their purchase. Petterson stated that the company stretched its payrolls and borrowed money while searching for a financial partner, but the effort proved insufficient.

Benjamin Schatz, a retiree living on the ship, described his reaction to the suspension as shock and denial. Schatz had been aboard for about one year when CBS News first met him in April 2025. On Wednesday, he was given only a few hours to pack his belongings and leave the vessel.

Petterson described the financial burden as backbreaking for the 300 people on board. He said the company had been managing the rising costs for nine months. Schatz noted that some passengers are now homeless and have very little money. The company’s statement confirmed that per-cabin fuel costs rose from an average of $1,800 per month to between $6,000 and $8,000.

The ship’s operations have ceased while the company prepares for the legal filing. Passengers are currently in the process of disembarking. The bankruptcy filing is expected to address the company’s debt and the status of the permanent cabin purchases.