A CRUISE line favoured by the Queen has filled for administration today. Last month the posh cruise firm told city bankers that it would get rid of one of its two ships. Today, the outlook did not look good for a financial restructure.

Ernst & Young LLP has been appointed to look for a buyer in the next few weeks. Reports in the UK Daily Telegraph over the weekend said no cruises had been cancelled yet.

Passenger's booked on her sister ship Hebridean Spirit will have to seek a refund. Spirit is to be converted into a private yacht by its Middle Eastern buyer, according to the Telegraph.

www.holidayinsiders.com has learned that Ernst & Young may be lining up Swan Hellenic, headed by Lord Sterling the former P&O Chairman, to step in. Ernst & Young declined to confirm.