Half a Cookie

On Monday, Excel Maritime Carriers announced that two charterers with long-term charters on three vessels have unilaterally started to pay approximately 50% of the agreed charter rate. Should the company continue to receive the reduced hire, the loss of hire throughout the terms of the charters is estimated to be $107 million, of which $32 million would impact 2009 cash flows and another $35 million would affect 2010 cash flows. In addition, the company has been approached by other charterers seeking to renegotiate charter rates. At the present time, the company is evaluating its alternatives with respect to these defaults.

Looking at the larger picture, the company’s Board of Directors, after careful consideration of the challenging conditions in the freight and financial markets has decided to suspend the company’s

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