Tourism Minister David Allen last night tried to calm stormy waters after a cruise line company operating in Bermuda filed for bankruptcy.

Just weeks after the latest figures showed a loss in the number of passenger arrivals to the Island, Commodore Holdings Ltd, which runs the Crown Dynasty, announced it was to suspend all of its cruise operations from this weekend after last-ditch talks to save the company failed.

It is the latest blow to hit Bermuda's tourism industry, which does not appear to be on the upturn, despite claims to the contrary by Government.

Yesterday, calls to the Florida-based business were not answered, but a recorded message assured people who had booked holidays that they would be contacted in due course.

But Mr. Allen told The Royal Gazette last night that he hoped the Crown Dynasty weekend stay in Bermuda could be saved, either with a financial re-organisation of Commodore or a buy-out.

And he said even if that failed, the Island would not lose thousands of potential cruise ship passengers because there were always other cruise ship companies ready to fill the gap.

Commodore Holdings decided on Wednesday night to disclose its financial plight after weeks of growing problems.

Chief Executive Officer of Commodore, Fred Mayer said in a written statement: "We deeply regret having to take this action, but we had no other choice.

"Negotiations between the lenders holding our mortgages just could not be resolved in time to avoid this consequence.'' It is believed that bookings had already been taken for the coming summer season for Crown Dynasty's weekly weekend stays in Dockyard, but how many is not certain.

However, Mr. Allen said Apple Vacations, which charters the Crown Dynasty and has worked with Bermuda for more than 25 years, has assured passengers that they will be either fully refunded, offered a different cruise to Bermuda or offered an alternative holiday.

And he said that so far most had asked to be given another cruise to Bermuda.

The Crown Dynasty, which was refurbished to the tune of $1.5 million and decked out in a Bermudian theme, began sailing to Dockyard in May of last year, arriving on a Friday and leaving the following Monday.

It had an 880-berth capacity, but 100 of those were solely for passengers cruising to the Island and then staying in hotels.

However, Mr. Allen said on each of its 22 stays in Bermuda it was almost full to capacity.

And this year it had planned to increase its visits from 22 to 24, with an increased number of cruise-and-stay passengers, despite a slow start to the scheme last year.

Commodore cruise line hits stormy seas The Minister said: "I don't think we are in a position to be losing any business because I think the gap will be filled by other cruise liners.

"I don't want to reach any forgone conclusions that Crown Dynasty will never return here, it could be.

"These problems have nothing to do with Bermuda, although they have the potential to impact on us. The Bermuda side of their business was doing very well and the ship was very popular.

"I think they have been going through some difficulties in the Caribbean market. It's an incredibly competitive market.

"But a lot of things have to happen in the next few days or even weeks before it's decided what will happen.

"I will be meeting with the president of Apple Vacations, which is a very reputable company, next month. If the Crown Dynasty does not return, then alternative arrangements will be made.'' And he said any new arrangements of cruise ship offers will another company will first have to be agreed by Government.

Commodore said it's troubles began with its ill-fated San-Diego day cruises after they were plagued by logistical problems.

The company decided to terminate the programme last June, netting massive losses.

The statement from Commodore read: "Commodore has been working around the clock with its lenders attempting to conclude a financing arrangement that would have prevented the cancellation of these cruises but has been unable to reach a final resolution.

"Commodore today filed a petition for protection under Chapter 11 of the US Bankruptcy Laws. Pursuant to such filing, the company will develop a strategy to consolidate its debts and then file its re-organisation plan with the court.

"The company is deeply sorry for the inconvenience the cancellations of these cruises will cause its passengers.''