Villa Vie Residences has suspended operations in Cambodia as it works to address what it described as extraordinary increases in fuel costs and evaluates restructuring and recapitalization alternatives, the company announced Tuesday.

The announcement follows the temporary lay up of the Villa Vie Odyssey, the company’s residential cruise ship, which Cruise Industry News reported earlier.

“Since the conflict began in late February, we have taken significant steps to reduce fuel consumption, including slowing the itinerary and spending more time in port,” the company said in a statement. “Those measures have not been enough to offset the extraordinary increase in fuel costs, and we have been unable to continue carrying the resulting operating losses.”

On an equivalent per-cabin basis, monthly fuel expense that historically averaged approximately $1,800 has recently reached an estimated $6,000 to $8,000 in parts of Asia, according to the company.

“Passing the full increase on to residents is not a realistic solution,” the company said.

Villa Vie added that it could not pass increases of that scale on to residents and that the resulting shortfall had placed its current operating model under unsustainable financial pressure.

Villa Vie said it was working with residents to coordinate disembarkation and identify temporary living arrangements. The company acknowledged that it was a difficult and disruptive period for residents, crew members and employees.

“Our focus now is on supporting residents, crew, and employees while we work toward restructuring and recapitalization over the next 60 days,” the statement continued. “That work is ongoing, and no outcome is assured.”

Villa Vie said it continued to evaluate potential paths forward but that no financing or transaction had been finalized.