Ambassadors International Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company's operating revenues totaled $17.4 million, a reduction of $41.3 million, from $58.7 million reported during the three months ended September 30, 2008. Operating loss from continuing operations totaled $31.9 million or $3.08 per diluted share for the quarter compared to income from continuing operations of $9.0 million or $0.64 per diluted share for the comparable period last year. Net loss for the quarter was $34.7 million or $3.18 per diluted share as compared to net income of $9.0 million or $0.72 per diluted share during the third quarter of 2008. Loss from continuing operations before income taxes was $33.7 million compared with income from continuing operations before income taxes of $8.1 million a year ago. For the nine months, the company's revenue was $48.8 million, down $86.6 million, from revenue of $135.4 million for the comparable period last year. Operating loss from continuing operations totaled $57.3 million or $5.53 per diluted share for the period compared to $4.9 million or $0.74 per diluted share for the comparable period last year. Net loss was $68.2 million or $6.10 per diluted share for the period as compared to a net loss of $6.4 million or $0.59 per diluted share for the nine months ended September 30, 2008. Loss from continuing operations before income taxes was $61.9 million compared with loss from continuing operations before income taxes of $9.4 million a year ago. The company announced non-cash impairment charges of approximately $32.0 million for the quarter ended September 30, 2009.

Ambassadors International Inc., Special/Extraordinary Shareholders Meeting, Nov 12, 2009, at 09:00 US Pacific Time. Location: 1071 Camelback Street, Newport Beach, CA 92660, United States. Agenda: To approve a proposal to issue up to 22,346,534 shares of the company's common stock pursuant to the company's previously announced offer to exchange for each $1,000 principal amount of its outstanding 3.75% convertible senior notes due 2027 and certain associated rights: (i) 230.3766 shares of its common stock, plus (ii) $273.1959 principal amount of its new 10% senior secured notes due 2012, upon the terms and subject to the conditions set forth in the company's offer to exchange and consent solicitation dated September 25, 2009 and related offer materials; and to transact such other business as may properly come before the special meeting or any adjournment thereof.

Ambassadors International Inc. announced a restructuring plan to reduce its outstanding debt by up to $70.5 million. The restructuring plan involves: A planned exchange offer for up to all of the Company's $97.0 million of outstanding 3.75% convertible senior notes due 2027. Assuming 100% of the holders of the Convert Notes accept the offer and elect to exchange their Convert Notes, the proposed exchange consideration to be offered will be comprised of: $26.5 million aggregate principal amount of newly issued 10% senior secured notes due 2012 on which interest will be paid in kind (or in cash at the company's election); and approximately 22.3 million shares of newly issued common stock, which will represent approximately 66.67% of the company's outstanding common stock, immediately following the exchange offer. Holders of approximately 59.5% of the aggregate principal amount of the Convert Notes have entered into separate exchange offer commitment and support agreements with the company pursuant to which the definitive terms of the exchange offer will be agreed and such holders have agreed to exchange their Convert Notes for the newly issued New Notes and shares of common stock in the exchange offer. The Company will not receive any cash proceeds in connection with the exchange offer. The Company anticipates that the restructuring plan will be completed during the fourth quarter of 2009.