Mikael Petterson, CEO of Florida-based Villa Vie Residences, told CBS News in a phone interview that the company plans to file for Chapter 11 bankruptcy after the MV Odyssey's continuous around-the-world voyage was suspended Tuesday in Cambodia.

According to CBS News, the ship left more than 200 passengers, mostly Americans, stranded in Sihanoukville. Petterson said the company ran out of money while searching for a financial partner: 'We've borrowed money, we've stretched our payrolls as far as we can,' he told CBS News.

The Traveler reports he has also publicly accepted personal responsibility, acknowledging he underestimated how quickly external shocks could unravel the financial model.

The arithmetic behind the collapse is stark. CBS News reports Villa Vie paid an average of $700 a ton for fuel before the war with Iran broke out in late February, then $2,000 to $3,000 per ton afterward, with the Odyssey burning 700 to 800 tons monthly.

The company said per-cabin fuel costs rose from about $1,800 a month to between $6,000 and $8,000. 'When our monthly expenses go up from $400,000 to $2 million, where are we going to get the $1.6 million?'

Petterson asked CBS News. The Traveler reports a planned cash infusion from a prospective investor fell through shortly before the shutdown, leaving the single-ship operator with no buffer.

For many residents, the end is not just an interrupted trip but the loss of a chosen home. CBS News reports the Odyssey launched in October 2024, selling permanent cabins for several hundred thousand dollars with a 15-year minimum residency guarantee, and some buyers sold their homes to move aboard.

Retiree Benjamin Schatz, who CBS News profiled in April 2025 after a year aboard, was given just hours to pack up and leave. 'Honestly, right now, I'm in denial and in shock, and I'm heartbroken,' he told CBS News.

The Traveler reports passengers describe arranging their own onward travel and housing, and that some cabin owners were earlier asked in Vietnam to collectively provide around $1 million to keep the ship sailing.

The Traveler frames the Odyssey's fate as a stress test for the residential cruising concept, noting prior attempts at permanent world cruises have struggled to launch or ran into funding gaps, and that Petterson himself has said no operator has yet sustained one.

Analysts quoted by The Traveler suggest future projects may need deeper capitalization, more conservative assumptions and clearer contingency plans for residents in the event of insolvency.

The ship remains laid up in Sihanoukville while Villa Vie assesses legal and financial options; The Traveler reports cabin owners may join creditor lists in any bankruptcy, and cross-border disputes involving residents from multiple jurisdictions can take months or years to unwind.