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Excel Maritime Provides Charter Status Update and Announces Suspension of Dividend
ATHENS, GREECE – February 17, 2009 – Excel Maritime Carriers Ltd (NYSE:
EXM), an owner and operator of dry bulk carriers and a leading international provider
of worldwide seaborne transportation services for dry bulk cargoes, today announced
the following:
Status of Charters
Two charterers, with long-term charters on three of the Company’s vessels, have
recently unilaterally started to pay approximately 50% of the agreed charter rate to
the Company. The loss of hire for Excel throughout the life of the charters, should the
Company keep receiving the reduced rates, is estimated to be approximately $107
million, of which $32 million would affect 2009 cash flows and another $35 million
would affect 2010 cash flows. In addition a few of the Company’s other charterers
have also approached the Company attempting to renegotiate charter rates.
While the Company monitors the status of its counterparties, it cannot assure that
charterers, will continue to pay hire at agreed rates, reduced rates, or at all. The
Company considers cash flow security and preservation an issue of great importance
and as a result will carefully evaluate all its alternatives, including the full
enforcement of its legal rights.
Suspension of Dividends
The Company’s Board of Directors, after careful consideration of the challenging
conditions both in the freight market and the financial environment, has decided to
suspend the Company’s dividends, including the dividend in respect to the fourth
quarter of 2008.
The decision is aimed at preserving cash and enhancing liquidity and is considered
to be a precautionary measure in view of the disruptions arising with some of the
Company’s charters.
The dividend policy will be regularly assessed by the Board of Directors and will
depend, among other things, on the Company’s obligations, leverage, liquidity and
capital resources and overall market conditions. The Company will also consider
other means of enhancing liquidity and strengthening its capital base.
About Excel Maritime Carriers Ltd
Excel is an owner and operator of dry bulk carriers and a provider of worldwide
seaborne transportation services for dry bulk cargoes, such as iron ore, coal and
grains, as well as bauxite, fertilizers and steel products. After the acquisition of
Quintana, Excel owns a fleet of 41 vessels and, together with 7 Panamax vessels
under bareboat charters, operates 48 vessels (5 Capesize, 14 Kamsarmax, 21
Panamax, 2 Supramax and 6 Handymax vessels) with a total carrying capacity of
approximately 3.9 million DWT. Excel Class A common shares have been listed
since September 15, 2005 on the New York Stock Exchange (NYSE) under the
symbol EXM and, prior to that date, were listed on the American Stock Exchange
(AMEX) since 1998. For more information about the Company, please go to our
corporate website www.excelmaritime.com.
Excel Maritime press release
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