Excel Maritime Business Profile and Challenges

Excel Maritime is a shipping company that operated a fleet of vessels, including bulk carriers, tankers, and container ships. They were a significant player in the global shipping industry.

Excel Maritime was founded in 1995 and was headquartered in Monaco. The company's primary business was providing transportation services for dry bulk commodities, such as coal, iron ore, and grain.

Excel Maritime faced significant challenges in the shipping industry, including increased competition from other shipping companies and fluctuations in global demand for shipping services.

Excel Maritime has a complex leadership history. Gabriel Panayotides was appointed CEO in 2008, after serving as chairman of the board since February 1998.

The company has had several CEOs in a short period. Stamatis Molaris, who was CEO from January 2005 to April 2008, resigned on February 23, 2009.

Christopher Georgakis, the former CEO of Oceanaut, was CEO of Excel Maritime before Molaris. He resigned in February 2008, just a few months before Molaris' departure.

Gabriel Panayotides took over as CEO in 2008, marking a significant shift in the company's leadership.

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Excel Maritime's financial performance is largely dependent on the dry bulk market, particularly the spot rate, which is influenced by the Baltic Dry Index.

The company earns a significant portion of its revenue from spot and time charters of its vessels, with longer-term charter contracts providing stable revenues.

In 2008, Excel Maritime derived approximately 23% of its revenue from a single charterer, Bunge.

The company's balanced fleet deployment strategy has allowed it to take advantage of improving dry bulk market conditions, resulting in increased EBITDA and operating cash flow compared to the respective period of last year.

Excel Maritime reported another profitable quarter in Q1 2010, with increased cash flow generation.

Pavlos Kanellopoulos, Chief Financial Officer, stated that the company is pleased to report another profitable quarter, attributing it to the balanced fleet deployment strategy.

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Excel Maritime made a significant acquisition in 2008, merging with Quintana Maritime as a wholly owned subsidiary on April 15th of that year.

The acquisition more than doubled the number of vessels Excel Maritime owned, adding 5 Capesize, 14 Kamsarmax, and 11 Panamax carriers to its fleet.

In addition to the vessels, Excel Maritime inherited newbuilding contracts for 7 Capesize vessels, with plans to take delivery of only 2 of them by October 2009.

The company also entered into a US$ 1 billion term loan and a US$ 400 million revolving loan to refinance most of its loans, securing a favorable interest rate of LIBOR + 1.25%.

Excel Maritime placed 14 of its Kamsarmax vessels and 3 Panamax vessels on time charters to Bunge as part of the acquisition.

In a surprising turn of events, Excel Maritime's MV Powerful was attacked by Somali pirates in the Arabian Sea's Gulf of Aden on November 11, 2008, but fortunately, no major damage or loss of life was reported.

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Excel Maritime's operations were a significant aspect of the company's success. As of November 2009, they owned and operated a fleet of 47 vessels.

The company's fleet consisted of various types of vessels, including 5 Capesize, 14 Kamsarmax, 21 Panamax, 2 Supramax, and 5 Handymax vessels. This diverse fleet allowed Excel Maritime to cater to different markets and cargo needs.

The vessels in Excel Maritime's fleet had a total carrying capacity of approximately 3.9 million deadweight tonnage. This was a substantial amount of cargo-carrying capacity, indicating the company's ability to transport large quantities of goods.

In 2010, Excel Maritime expected to receive 2 additional Capesize vessels, which would further enhance their cargo-carrying capabilities.

The company's fleet of vessels is a crucial part of its operations, with 47 vessels in total as of November 2009. These vessels include 5 Capesize, 14 Kamsarmax, 21 Panamax, 2 Supramax, and 5 Handymax vessels, with a total carrying capacity of approximately 3.9 million deadweight tonnage.

The company's vessels are depreciated over a useful life of 28 years and have a scrap value of $200 per light weight ton. This means that the company can expect to recover a certain amount from selling or scrapping its vessels at the end of their lifespan.

Newbuild Capesize vessels were selling for as much as $150M in November 2007, but by November 2009, prices had dropped to as low as $59M, and in some cases, as low as $45M. This significant drop in price highlights the volatility of the market for new vessels.

The company's net revenue is affected by various factors, including the global supply and demand for vessels captured by the BDI, fleet utilization rates, sales and scrappage of ships owned by the company, and Chinese demand for iron ore and coal. This complex interplay of factors makes it challenging for the company to predict its revenue.

The company Excel Maritime Carriers Ltd. has fixed new one-year time charters for two dry bulk carriers. The charters were for a period of 10-13 months at a gross daily rate of $11,000.

The vessels involved in the charters were the Kamsarmax M/V Iron Vassilis and the Panamax M/V Grain Express. The Kamsarmax M/V Iron Vassilis has a deadweight tonnage of 82,257 and was built in 2006.

The Panamax M/V Grain Express has a deadweight tonnage of 76,466 and was built in 2004. This charter brings the company's charter coverage for the full year 2012 to 72% for the entire fleet.

The company's charter coverage for the Capesize fleet is 100%. Excel Maritime Carriers Ltd. is an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportation services for dry bulk cargoes.

Excel Maritime, a dry bulk carrier owner and operator, filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York.

The company reached an agreement with its senior lenders on the terms of a financial restructuring, providing up to $80 million of additional liquidity and significantly strengthening its financial profile.

Excel Maritime's Chairman of the Board, Gabriel Panayotides, stated that the restructuring process would have no impact on suppliers and that the company would continue to provide high-quality and efficient seaborne transportation services to its customers.

The company's senior secured lenders supported the agreement, which is substantially similar to the previously announced agreement in principle reached with the steering committee of its senior lenders.

Excel Maritime received up to $50 million of capital as a result of an agreement between the senior lenders and an entity affiliated with the family of Mr. Panayotides, in exchange for a majority of the equity in the company.

Here are the key terms of the agreement:

The company plans to use the additional liquidity to strengthen its balance sheet and position itself for future growth and success.

Excel Maritime's exclusivity period for reorganization started on July 1, and the company must file a plan of reorganization within this period to avoid competing plans from other creditors.

The company's plan gives the controlling shareholders the exclusive right to buy back their shares at a price that is significantly less than the market value, while leaving non-trade unsecured creditors with a slim chance of recovery.