Nor is Danaos Immune

In today’s earning’s release, Danaos reported generally satisfactory results but also began to show the effects of the economy and has consequently begun the process of shoring itself up for the future.

The extraordinary drop in vessel values combined with lower interest rates, which resulted in a negative valuation of its interest rate swaps, has resulted in the company’s breach of certain financial covenants, including the expected LTV as well as the equity covenant as non-cash charges have been taken against equity. Danaos has or is in the process of obtaining waivers for 2008 and 2009 under their various credit facilities.

In terms of cash saving actions, the company has suspended its dividend until market conditions permit. This will allow the company to take advantage of its strong

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