How to Win Through Renegotiation

Following on the heels of Eagle’s successful renegotiation, Excel Maritime Carriers also restructured its future obligations. Having taken delivery of a newbuilding Capesize, with employment, in December, the company sought to cancel its obligation to purchase a 2002 built Supramax it had agreed to purchase for $72.5 million as part of the Oceanaut transaction. Excel had agreed to purchase this vessel in the event that Oceanaut could not lift the subjects by October 31st. As a consequence of the credit crisis, Oceanaut was unable to lift the subjects and Excel assumed the obligation to purchase the vessel.

The settlement limits the cash outlay to the 10% deposit paid under the purchase contract and the issuance of 1.1 million shares to a company nominated by the sellers. For this consideration

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