946842--4/15/2009--AMBASSADORS_INTERNATIONAL_INC

related topics
{capital, credit, financial}
{operation, international, foreign}
{tax, income, asset}
{condition, economic, financial}
{cost, operation, labor}
{provision, law, control}
{personnel, key, retain}
{competitive, industry, competition}
{acquisition, growth, future}
{loss, insurance, financial}
If we are not successful at a combination of selling our non-Windstar Cruises assets, raising additional financing and/or renegotiating existing debt obligations in order to raise funds for operations, we may not be able to continue as a going concern. In connection with our acquisitions within the cruise segment, we assumed or incurred a significant amount of indebtedness, which could adversely affect our cash flows and business. If we are unable to effectively compete against our competitors, our financial condition will suffer. Our operations and financial condition may be adversely affected by events adversely affecting the travel industry, including the effects of general economic conditions. We are dependent upon key personnel. If we do not complete drydocking on schedule or if ship mechanical faults result in unscheduled drydockings and repairs, we will incur additional expenses and may also lose revenues by canceling planned cruises. Supply shortages and other risks related to the demand for skilled labor and building materials could increase costs and delay deliveries. Unexpected and adverse changes in the foreign countries in which we operate could result in project disruptions, increased costs and potential losses. Our business could be adversely affected by losses associated with our reinsurance operations. We may be subject to significantly higher U.S. income taxes if we do not qualify for exemption from tax or for deferral of tax under U.S. tax laws in respect of Windstar Cruises income. Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of us, which may be beneficial to our stockholders, more difficult and may prevent attempts by our stockholders to replace or remove our current management.

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