Conflict Resolution – The Right Way

On Monday, Pacific Basin announced that over the last month it’s subsidiary (“Company”) which was engaged in chartering-in vessels had reached a compromise with the group of shipowners from whom it had chartered-in those vessels. The owners and the Company mutually agreed to the early termination of the charters and simultaneously entered into new charters at market rates in respect of those vessels. Currently, the existing charters have remaining charter periods ranging from 6 months to 3.5 years.
Under the terms of the transactions, the Company will make one-off advanced payments to the owners totaling $37 million in 2008 to lower its future charter-hire by $41.9 million between 2008 and 2012 with $28 million of the savings occurring in 2009. The consideration paid represents the charter hire that would have

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