Lender Seizes Villa Vie Odyssey as Residents Pack Up in Cambodia

Resident Mike Petterson confirmed that a lender has taken control of the Villa Vie Odyssey, a floating residential community currently anchored in Cambodia. A message distributed to the ship's residents, which was obtained by CBS News, stated that the vessel is now under the control of its lender. The ship is scheduled to move from Cambodia to Singapore soon. Multiple sources familiar with the matter say the vessel could be auctioned off once it reaches its new location.

Petterson, the company's founder and executive chairman, told CBS News that the transition is a 30-to-90-day process. He said the company has time to complete a restructure during that period. Leadership is optimistic they can regain control of the ship if they secure an operational partner. The lender now assumes responsibility for crew wages, fuel, and vessel safekeeping.

Residents were given only the weekend to remove all personal belongings from the ship before access was restricted. Petterson emphasized that the lender is not out of negotiations. He compared the situation to a car repossession, noting that one can still get the vehicle back with a funded plan.

Internal documents reviewed by CBS News show the ship has been in financial distress for at least three months. A presentation from an early August meeting noted the need to distinguish between residents who could not contribute funds and those who were unwilling to do so. The company had been urging residents to provide additional capital to keep the ship afloat.

Joel Greiff, a resident from Naples, Florida, spent $350,000 on a cabin. He lived on the ship for just 26 days after moving in in October. Greiff paid a deposit in August 2025 and the remainder in May 2026. He received notice of the financial troubles in late July. He sold his RV on August 3, citing the clear signs of failure.

Greiff now rents a place in Kbal Spean, Cambodia, for $200 a month. He said he has accepted that he may never see his investment again. He described the company's management style as lacking business knowledge. A group of residents attempted to buy the ship from the company, but a lender denied them funding despite pledges from 169 residents.

The message to residents stated that no sale has been scheduled yet. It claimed there is time to present a viable plan. A Chapter 11 bankruptcy filing would cost the ship approximately $3 million for the first 60 days. The proposed plan involves using debt and legal issues to support operations through resident maintenance collections. Petterson said the company is entirely owned by employees and residents, making them the natural shareholders for any financial needs.

Prior to the crisis, Residential Cruise Holdings was acquiring at least one additional cruise ship and developing two other residential projects. Petterson said the company's focus is currently 100% on the Odyssey. He noted that Villa Vie was capitalized entirely by residents, with no outside stakeholders involved in the ownership structure.