I caught that story on Maritime Matters yesterday Keep in mind that the sale to a shipbreaker hasn't been confirmed as far as I know. No source was mentioned. However, I wouldn't be surprised if this was true. I think this is another example of a ship worthy of preservation being bitten by hard economic reality. The popular appeal and desire is there but the money is not. A lot of potential museum ships/floating hotels have had proposals die on the vine for exactly that reason.
I heard on the French radio today that Norway would be delivered to shipbreakers on Monday if no other viable solution was found till then. Norway costs $500,000 per month to NCL and they can't afford it anymore. Apparently this is what Niels North, of NCL announced in a Norwegian newspaper today. Several French newspapers report this as well.
A few days ago, a famous French tourism company, Pierre et Vacances, abandoned their project of converting Norway to a floating hotel and museum, as it was too expensive for them.
1962: Enters service as SS France
1974: Laid up at Le Havre, France
1979: Bought and rebuilt as SS Norway
1980: Begins Miami cruises for Norwegian Cruise Line
1990: Two decks added
2001: Retirement of ship postponed after 9-11
2003: Boiler explodes, killing eight crew members
2003: Ship towed to Germany
2004: NCL says ship won't return to U.S. market
2005: Scrapping raised as possibility. Ship transferred to Star Cruises