A final attempt by Villa Vie Odyssey residents to purchase and operate the ship failed.
The Odyssey’s final months have been marked by signs of Villa Vie Residences’ financial difficulties, culminating in the ship’s abrupt halt last week in Cambodia. Residents – who purchased cabins for between $119,999 and $439,999 in hopes of living permanently at sea – were given just eight hours to disembark on Tuesday.
Paul Montoya, a member of the ship’s seven-person residents’ council who helped secure buyout pledges from residents, described the offer Thursday as a “Hail Mary.”
Two days later on Saturday, a resident-backed group calling itself Sagar Capital told residents the effort had ended, according to a letter reviewed by Business Insider. Three residents confirmed the contents of the letter.
The letter said the group spent two months trying to negotiate a deal, but was unable to do so.
Montoya said in a call with Business Insider on Monday that the group agreed to contribute a “reasonable amount” of capital to the buyout to “keep things moving forward,” while other residents were invited via WhatsApp or in person to pledge matching funds.
Cambodian authorities said 203 residents were on board when the ship docked in Sihanoukville. According to the letter, 169 residents made pledges, but the amount pledged was insufficient.
“We were a little short, but we were pretty close,” Montoya added, declining to say how much residents had promised. He said no money was collected from residents.
Find out more about Villa Vie Odyssée:
In its letter, Sagar Capital cited a number of reasons for ending the offer, which several residents said was their only hope of keeping the Odyssey sailing. These included:
- An inability to reach an agreement with the ship’s lender;
- Villa Vie having more debt than expected;
- Potential legal exposure;
- The cost of bankruptcy proceedings;
- The financial risk on residents’ savings.
“It was probably more exploratory than anything else to see if the support would be there,” Montoya said Monday. “I think overall the support was there, but it probably would have been very tenuous in trying to resolve these issues.”
In an interview with Business Insider on Friday, Petterson said the company is doing everything it can to keep the ship afloat after a potential deal with Oneil Khosa, the former CEO of Margaritaville at Sea, fell through earlier this month.
Petterson said Villa Vie is focused on recapitalization. “Preferably, we need an operational partner who can step in with a stronger hand and a bigger pocket,” he said.
Earlier last week, Petterson told Business Insider that the company was considering bankruptcy.
Villa Vie, Petterson and company co-founder Kathy Villalba did not immediately respond to Business Insider’s requests for comment for this story.
The resident-led effort was a last-ditch attempt to save the ship, Montoya said. Now, he said, residents are counting “even more on long-term action,” such as the intervention of a “kind soul.”
Cheryl Ethrington, a resident who had planned to commit to the buyout, said, “I haven’t completely given up hope that someone will take over and run with it. Otherwise, life goes on.”
You can read the full letter from Sagar Capital to residents below:
A letter to our fellow Odyssey residents October 31, 2026 Dear fellow citizens and dear friends, It is with deep sadness that we write to share the difficult news that Sagar Capital has ended its efforts to guide residents in the purchase and operation of the Odyssey. Unfortunately, this decision is final. Out of respect, we would like to share a clear and frank explanation. Why we are ending this:
- No agreement with the lender. We negotiated with the ship’s lender for two months and could not reach an agreement. We understand that the lender, along with Columbia Ship management, have now taken control of the vessel and intend to sell it at auction.
- More debt than expected. We only had access to the Villa Vie archives last Saturday. Our review revealed that the debt was significantly higher than expected.
- Legal exhibition. Taking over Villa Vie and changing its management would have exposed Sagar to significant liability resulting from current and future lawsuits.
- The cost of bankruptcy. A Chapter 11 proceeding would cost about $3 million for the first 60 days alone and could take much longer if lawsuits are filed.
- The risk for your savings. We were unable to find a monthly fee that both covered the costs of operating the vessel and remained affordable. We could not, in good conscience, ask anyone to risk their savings on a plan that might fail.
What we decided to do Our only goal was to sail the ship for the people who live on it. It was never our intention to sell anything to anyone, nor to pressure anyone into making a decision. We have tried to present the facts to you as we learned them, and we are sorry that the facts did not allow us to succeed. Deep gratitude We received 169 pledges. To each of you who got involved, and to all those who responded to surveys, participated in calls and offered ideas: thank you for your trust and commitment. Your commitment: no money has been collected. What we have learned over these months belongs to this community. If residents with the financial means to pursue an effort ever come together, we will participate with enthusiasm. We are bonded by this remarkable and improbable adventure and will forever remain your neighbors and friends. We know this is a tender time and we need to lean on each other for emotional and practical support. With this at heart, we would like to come together virtually in the coming days so that we can share, reflect and support each other as a community. The newly elected Interim Resident Council stands ready to serve or assist in times of need. Even though this chapter ends, our community remains strong. Please reach out as we always have, whether to talk, share resources, or navigate next steps together. We have been and will remain together in this situation, and we will continue to support each other. With respect and gratitude, Sagar Capital LLC
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