'I feel awful': Owner of 3-year cruise that abruptly shut down and left passengers stranded in Cambodia asked ship residents for emergency loans

Chris ClarkThu, October 29, 2026 at 9:00 PM UTC

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Mikael Petterson, the founder of a “never-ending” cruise that abruptly shut down and left passengers stranded in Cambodia, said he’s doing everything he can to make things right.

“I feel awful,” Petterson told Business Insider, adding that the residents who were kicked off the ship are “counting on me to make the decisions here, and there’s nothing else I’m focused on.”

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On Oct. 27, passengers on Villa Vie Residences’ three-year cruise were told to collect their belongings and debark the ship, evicting them from their ocean-bound homes and leaving them stranded. Villa Vie, which has since suspended operations, says fuel cost increases were behind the move.

Before the war in Iran began in late February, Villa Vie’s oil cost sat between $600 or $700 per metric ton for its ship, Odyssey. But in March, the price of marine gas oil in Singapore skyrocketed to nearly $2,000 per metric ton, Business Insider reports.

“The company cannot simply pass increases of that scale on to residents, and the resulting shortfall has placed its current operating model under unsustainable financial pressure,” Villa Vie said in a statement.

One month later, Villa Vie reportedly asked residents for loans in an effort to boost its finances, offering them interest rates between 12% to 24%. Villa Vie also adjusted Odyssey’s itinerary by cancelling stops at certain ports in order to save on fuel.

Villa Vie’s financial troubles go beyond fuel costs

As Petterson shared with Business Insider, The Odyssey’s three-year journey, which was initially scheduled to begin in May 2024, was delayed for months due to mechanical issues. Preparing the ship for launch ended up costing Villa Vie $15 million more than the company was expecting.

Once the Odyssey had set sail, several passengers were displeased with their lodging and accommodations. Two passengers reportedly sued Villa Vie in 2025, accusing the company of failing to meet the standards that were promised. Villa Vie has reportedly disputed the claims and both lawsuits remain ongoing.

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Petterson admits the company’s financial issues during its first 18 months at sea were “a ginormous undertaking,” but Villa Vie had a plan that it believed would boost the operation’s cash flow and allow the company to break even by Q2 2026. However, the war in Iran, which has severely disrupted the global oil and energy markets, threw a wrench in the company’s plan.

‘All residents must disembark’

The Odyssey’s passengers reportedly found out about Villa Vie’s financial trouble via an internal messaging board, according to Travel Gossip.

A message from Villa Vie CEO Kathy Villalba, sent around 7:00 a.m. on Oct. 27, said the ship had been “unable to secure the fuel necessary to continue operations [and] as a result, the Odyssey will enter a temporary layup this afternoon, with crew remaining onboard to maintain the vessel and its essential systems. All residents must disembark by 2 p.m. today.”

The company is now trying to identify temporary living arrangements for displaced passengers. It will not, however, cover people’s travel costs out of Cambodia, Bloomberg reports.

The Odyssey has a capacity of 650 passengers, but just 200 or so were on board at the time. (It never operated at full capacity.) Villa Vie had advertised the ship as a long-term or even permanent residence. The starting price, according to the company website, was $59,999, though some suites went for as much as $229,999.

Villa Vie had promised passengers that the Odyssey would stop at 425 ports across 147 countries, spending between two and seven days in each port. All food and drinks (alcohol is included during meal hours) were part of the price, as well as WiFi and medical visits. Housekeeping and laundry service was done twice per week, each with no additional cost.

Villa Vie had reportedly planned to commission a second residential cruise ship in 2029, but the fate of that vessel is unclear.

“Our focus now is on supporting residents, crew and employees while we work toward restructuring and recapitalization over the next 60 days,” the company said in its statement. “That work is ongoing and no outcome is assured.”

With files from Chase Kell.

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Source: “AOL Money”