Excel Maritime Files Chapter 11, Plans Financial Re-structuring

Press Release
Wednesday, June 12, 2013
Excel Capesize Vessel: Photo courtesy of Excel Maritime

Excel Maritime Carriers, owners & operators of a large fleet of dry bulk carriers, become the latest casualty of the downturn in the shipping industry, but sets financial plans for recovery.

The company says t has reached an agreement in principle with a steering committee of its senior lenders on the terms of a financial restructuring to strengthen its balance sheet.

Under the terms of the agreement Excel will receive:

  • Up to $50 million infusion of capital as a result of an agreement between the senior lenders and an entity affiliated with the family of Gabriel Panayotides, Excel Maritime's Chairman of the Board of Directors. Under the terms of that agreement the entity affiliated with the family of Mr. Panayotides will receive a majority of the equity in Excel.
  • The release of an additional $30 million of currently restricted cash.

As part of the agreement, the Company's senior lenders' steering committee has agreed to an extension of the maturity of the company's senior secured facility through 2018 as well as significant amortization and covenant relief in line with the current outlook of the market. The senior lenders will receive an equity stake in the Company, while current management continues to operate the business.

"We are pleased to have reached this agreement with our senior lenders' steering committee," said Mr. Panayotides.   "Like other companies in our industry, Excel Maritime has been impacted by macro-economic conditions that have led to volatility and overall declines in charter rates.  Securing up to $80 million of additional liquidity significantly strengthens our financial profile and positions Excel Maritime for future growth and success."  

"We look forward to maintaining our strong relationships with charterers, reflecting the Company's superior worldwide fleet operation and performance.  As always, Excel Maritime remains committed to providing high-quality and efficient seaborne transportation services to our clients without any interruption in operations."

Excel and certain of its subsidiaries are commencing solicitation of senior secured lenders and other creditors in order to implement the restructuring through a court supervised prepackaged plan of reorganization.

The company currently owns and operates a fleet of 38 vessels (six Capesize, 14 Kamsarmax, 14 Panamax, two Supramax and two Handymax vessels), one of which, a Capesize vessel, is owned by a joint venture in which Excel holds a 71.4% interest, with a total carrying capacity of approximately 3.6 million DWT.

Maritime Reporter July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

'Double Jeopardy – Trial by Media, Trial by Law' London Opening

BIMCO notes that the highly acclaimed "Double Jeopardy - trial by media, trial by law" first showcased at the BIMCO AGM in Dubai earlier this year is to be brought

Refiners Seek Jones Act Workarounds as Crude Export Debate Heats Up

As the first U.S. oil condensate exports head to Asia from the Gulf Coast, crude producers and refiners are exploring ways to get around a century-old law that

China Rejects Manila Protests, Laments Detentions

China rejected Philippine complaints on Wednesday about Chinese survey vessels operating in a gas-rich area of Manila's exclusive economic zone, and has lodged

Bulk Carrier Trends

Star Bulk to Acquire 34 Drybulk Vessels

Star Bulk Carriers Corp. announced today that it has entered into definitive agreements with Excel Maritime Carriers Ltd.  pursuant to which the Company will

Week's Ocean-Going Shipbuilding Orders Sparse

Despite some media reports of more significant ordering, there is only one firm shipbuilding order to report in the drybulk sector, according to the latest Clarkson Hellas S&P Weekly Bulletin,

Star Bulk to Acquire 34 Drybulk Vessels

Star Bulk entered into a definitive agreement with Excel Maritime Carriers Ltd., and as a result, will acquire 34 drybulk vessels for an aggregate of 29.917 million

Finance

Maersk Drilling Q2 2014 Profit Dips

Maersk Drilling informs that in Q2 2014 it delivered a profit (NOPAT) of USD 117-m (USD 150-m). While the underlying operational performance remained strong with an operational uptime of 97% (96%),

Prosafe Q2 Earnings Below Expectations

Offshore accommodation rig provider Prosafe reported second-quarter earnings below expectations on Thursday and said that its short-term market outlook is weaker

LNG Carriers GasLog Financial Results Q2 2014

GasLog Ltd. and its subsidiaries, an international owner, operator and manager of liquefied natural gas carriers, has reported its financial results for the quarter ended June 30,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Pod Propulsion Salvage Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2435 sec (4 req/sec)