Last Friday, NCL Corp, Apollo Management and Star Cruises quietly agreed to the termination of Star’s interest in NCL America, exactly four weeks to the day that Star shares shot up in Hong Kong on rumors of the disposal of an unnamed subsidiary.

NCL Corp. has made an unspecified payment to Star for its interest in Pride of America’s assets. In January, assets related to Pride of Aloha are expected to be settled.

A circular from September 2007 detailed the agreement between Star and Apollo.  It also gave the parties until the end of this year to decide whether to continue the NCL America venture, and also outlined the financial terms of continuing or disbanding the US-flag brand.  It appears the agreement provides for a total distribution of approximately $500m to Star from NCL Corp.

The circular states that if the parties agreed to continue the NCL America operation after Star gave notice to withdraw, NCL would pay a cash consideration equal to $800m, based on the appraised value of Pride of Aloha ($340m) and Pride of America ($460m) less depreciation for both ships from April 2007 to the NCL America valuation date, and the $251m in debt on Pride of America.

Pride of America continues to operate in Hawaii under the US flag, a program recently extended through January 2012

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