Saga Cruises has set a deadline next month for proposals to release funds from its ocean cruise business.

Sky News understands that the London-listed insurance and travel group is working with investment bank Lazard on a potential partnership arrangement for the cruise business.

According to insiders, potential buyers have been asked to submit indicative offers in April.

The deal structure is still to be determined, but Saga and its advisers are exploring options for the unit, which operates the Adventure and Discovery.

Saga has struggled for years under the weight of massive debt.

Last autumn the company hired chairman Roger de Haan for £35m, adding to the huge sum it owes him.

The Saga board’s review of new corporate activity comes ahead of the repayment of a £150m bond due in May, but it is understood the money will be repaid from funds lent by Mr De Haan.

At its interim results published in September last year, Saga’s balance sheet was saddled with more than £650m of net debt.

The company’s shares have fallen by almost a fifth in the past 12 months, leaving it with a market capitalization of just over £200m.

Mr De Haan, the company’s former chief executive, parachuted back in the summer of 2020 to lead a turnaround, investing £100m as part of a wider capital raising.

The company previously rejected takeover offers from private equity investors.

Early last year, it launched a global website called Saga Exceptional, designed to provide advice and services to consumers over 50.

However, the company was forced to deal with a change in leadership last year after CEO Euan Sutherland resigned.

He has been replaced by Chief Financial Officer Mike Hazell.

Much of the company’s current woes are related to conditions in the auto insurance market, which it said has impacted its ability to generate cash and reduce debt.

Saga was also in talks to sell its underwriting business to Australian insurer Open, but failed to finalize a deal.

Mr de Haan, the son of the company’s founder, had lent Saga £50m before extending the loan to £85m earlier this autumn.

Saga shares closed at 119.6p on Thursday.

A company spokesman declined to comment.