Bankruptcy was expected for some time, after shipping’s long period of unrelentingly punitive bulk charter rates impacted on Excel’s 38-vessel portfolio, as well as its "significant debt obligations," according to Wells Fargo securities analyst Michael Webber, speaking to Reuters. The company was in $1bn of debt as of June 2012.
As part of a financial restructuring agreement, the company has received $50m of capital from an “entity affiliated with the family” of Excel chairman Gabriel Panayotides. Further, the company will receive an additional $30m of hitherto restricted cash as part of the agreement.
“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,” Panayotides said. “Securing up to $80m of additional liquidity significantly strengthens our financial profile and positions Excel Maritime for future growth and success.
Panayotides stated the company’s intention to continue “without any interruption in operations”.
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