One Step Forward One Step Backward and One Tentative Step….

Danaos Corporation reported this week that it had now obtained waivers from all its lenders covering all the prior breaches of financial covenants in its credit facilities as well as any subsequent breaches until October 1st 2010.

Less positive was the news that Zim Integrated Shipping Services stated that it is reducing unilaterally all of its long-term charter payments by 35% commencing September 1st for a period of 3 years. Danaos, which has 6 vessels on charter to Zim for 12-year periods, has not accepted this condition nor has it acquiesced to this reduction. The company is currently in discussions with Zim and is evaluating the situation.

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Zim Prepares for HK IPO with Goldman Sachs, Morgan Stanley

Israel Corp said on Monday it is planning to float Zim Integrated Shipping Services either in Hong Kong or Tel Aviv. The major investment holding company in Israel said in a statement that no decisions have been made as to the timing, location and size of an offering, which also be dependent on the prevailing market condi­tions and regulatory approvals. Earlier, South China Morning Post reported Zim could raise as much as $500 million with the assis­tance of Goldman Sachs and Morgan Stanley