The 1961-built cruise ship Funchal sold at auction in Portugal earlier this month for just above the €802,354 minimum bid, with a Greek shipowner reportedly the winning bidder — and competing reports pointing to a Turkish scrapping company as the actual buyer.

Correio da Manhã first reported the Greek shipowner's offer, noting the buyer owns shipyards in Greece, including dismantling and repair facilities. Jornal de Negócios confirmed two international companies bid for the vessel, with the Greek party submitting the better offer.

But Madeira Island-based newspaper JM reported the 9,845-ton ship was acquired by a Turkish scrapping company and will be dismantled in Aliaga — the same Turkish shipbreaking yard that took two of the Funchal's former fleet mates.

Why was the Funchal auctioned?

The 402-passenger vessel was auctioned to settle debts of its last owner, Teamson Lda. The Portugal-based company is now undergoing an insolvency process.

Teamson had planned to convert the ship into a stationary hotel. The Funchal entered drydock for the conversion, with asbestos and other hazardous materials stripped from its internal areas. The project stalled, but auctioneers said the vessel is now asbestos-free and holds a license for hotel activities.

That license and completed hazardous-material removal could matter to any buyer weighing a hotel conversion against scrapping — the two exit paths now in dispute across the conflicting reports.

Portuguese authorities had previously auctioned two other ships from the same collapsed operation.

What happened to its fleet mates?

The Funchal was last operated by Portuscale Cruises and has spent most of the past decade docked in Portugal. Two sister ships from the same operator met a clearer end:

• Princess Danae, beached at Aliaga Shipbreaking in 2015
• Arion, beached at the same yard in 2018

Both ships were operated by Portuscale Cruises before Portuguese authorities auctioned them. If the JM report proves accurate, the Funchal would follow the identical route to Aliaga, closing out the Portuscale fleet entirely.

Does the sale signal anything for the trade?

For sellers and operators, the episode closes a long-running chapter in small-ship cruising. The Funchal was one of the oldest cruise ships still in existence, originally built in 1961 to connect Portugal with its Atlantic islands.

The final price — barely above an €802,354 floor set to cover creditor claims — underscores how little residual value the secondary market assigns to aging tonnage without an operating brand attached. Heritage alone did not move the bid; the asbestos-free certification and hotel license did not appear to lift the price above the minimum.

At press time, the buyer's identity and the vessel's final destination remained unconfirmed, with Greek and Turkish reports diverging. If the Turkish account holds, the Funchal should arrive at Aliaga's beaches within months, following the Princess Danae and Arion out of the market.