Excel Maritime

Excel Maritime, formally Excel Maritime Carriers Ltd., was a Greek shipping holding company focused on the ocean transport of dry bulk commodities. Its fleet carried major industrial and agricultural cargoes, including iron ore, coal, grains, bauxite, fertilizers and steel products. The company operated through a structure of wholly owned vessel-owning subsidiaries incorporated in Liberia, the Marshall Islands and Cyprus, while its headquarters and technical-management activities were based in Greece. Its registered office was in Hamilton, Bermuda. The business earned most of its revenue by placing vessels on spot or time charters. Spot-market income was exposed to fluctuations in the Baltic Dry Index and to changes in global vessel supply and cargo demand, while longer-term time charters provided greater revenue visibility. Demand from China for iron ore and coal was an important influence on dry-bulk conditions. Charterers could deploy vessels internationally, so the company generally did not report revenue by geographic trading area. Excel's corporate history included a public-market listing inherited from B&H Maritime. The predecessor was listed on the AMEX and NASDAQ in February 1989. After B&H had ceased operations and disposed of its assets, it was acquired in 1997 and relisted as Excel Maritime Carriers in 1998. Excel moved to the New York Stock Exchange on September 15, 2005. Before its financial collapse, it was described as the largest bulk carrier, measured by deadweight tonnage, among U.S.-listed companies and was included in the NYSE Composite Index and the PHLX Marine Shipping Index. A major expansion came through the acquisition of Quintana Maritime. Announced in January 2008 and completed on April 15, 2008, the transaction more than doubled Excel's fleet and added Capesize, Kamsarmax and Panamax vessels, together with newbuilding commitments. The company financed the expansion with substantial debt, including a term loan and revolving facility. Several vessels were placed on time charters to Bunge, which represented a significant concentration of charter revenue in 2008. The global shipping downturn and weak charter markets placed pressure on the enlarged, highly leveraged fleet. Charterers sought to renegotiate rates, and at least one charterer was reported to have paid only half of its contracted rate in February 2009. Excel ultimately filed a pre-negotiated Chapter 11 case in the United States on July 1, 2013. After negotiations with bondholders, a restructuring agreement was ratified on January 27, 2014. The plan reduced approximately $920 million of pre-petition debt to about $300 million. The company's management was removed after the restructuring, and Oaktree Capital Management acquired the reorganized remains. Excel's stock was delisted in 2013 and its over-the-counter trading was halted on February 14, 2014. The company is therefore treated as defunct rather than as an active shipping brand.

Excel Maritime Carriers Ltd. was an international dry-bulk shipping company headquartered in Athens, Greece. It was incorporated under Liberian law and maintained a registered office in Hamilton, Bermuda. Rather than owning the entire fleet in one legal entity, it used separate wholly owned subsidiaries for individual vessels. These subsidiaries were incorporated in Liberia, the Marshall Islands and Cyprus. Maryville Maritime Inc., another wholly owned subsidiary based in Piraeus, provided technical fleet management, while Excel Management Ltd. handled vessel-brokerage services. The company's public-market history began with B&H Maritime, which was listed on the AMEX and NASDAQ in February 1989. B&H later ceased operations and disposed of its assets. In October 1997, the dormant company was acquired, and it was relisted on the AMEX in 1998 under the Excel Maritime Carriers name. Excel subsequently obtained a New York Stock Exchange listing on September 15, 2005. Before its bankruptcy, it was included in the NYSE Composite Index and the PHLX Marine Shipping Index and was identified as the largest bulk carrier by deadweight tonnage among U.S.-listed companies. Excel's operating model centered on bulk carriers transporting commodities that move in large unpackaged quantities. Its cargo mix included iron ore, coal, grains, bauxite, fertilizers and steel products. The company earned revenue from both spot charters and time charters. Spot exposure offered access to stronger markets but created significant volatility because rates followed global vessel supply, commodity demand and indicators such as the Baltic Dry Index. Time charters could provide more predictable cash flow, although they also created dependence on charterers and fixed contractual rates. Chinese demand for iron ore and coal was an important market factor during the company's principal operating period. The decisive expansion occurred in 2008. On January 29, Excel agreed to acquire Quintana Maritime in a transaction valued at approximately $1.44 billion, consisting of cash and Excel shares. The merger was completed on April 15, 2008. Excel acquired five Capesize, fourteen Kamsarmax and eleven Panamax carriers, more than doubling the number of vessels under its ownership. It also inherited contracts for seven Capesize newbuildings. By October 2009, the company expected to take delivery of only two of those vessels, with one to be held in shared ownership with an outside party. The acquisition was supported by approximately $1 billion in term financing and a $400 million revolving facility. Fourteen Kamsarmax vessels and three Panamax vessels were placed on time charter to Bunge. The enlarged fleet left Excel exposed to the sharp deterioration in dry-bulk shipping markets. As of November 2009, the company owned and operated 47 vessels: five Capesize, fourteen Kamsarmax, twenty-one Panamax, two Supramax and five Handymax vessels, with aggregate capacity of approximately 3.9 million deadweight tons. The market downturn reduced vessel values and charter income. Charter counterparties sought lower rates, and one charterer was reported in February 2009 to have paid 50 percent of its contracted rate. The company's heavy financing commitments and dependence on volatile shipping markets contributed to its later distress. Excel filed a pre-negotiated Chapter 11 bankruptcy case on July 1, 2013. Bondholders rejected the original terms and reached a revised agreement in late November 2013. The plan was ratified on January 27, 2014, with the company expecting to emerge in February. Under the plan, approximately $920 million in pre-petition debt was reduced to roughly $300 million. Gabriel Panayotides and the existing management team continued to lead the company during the process but were removed after the reorganized business was acquired by Oaktree Capital Management. The company's NYSE listing was removed in 2013, and its shares later traded over the counter under EXMCQ until trading was halted on February 14, 2014. Excel Maritime is consequently recorded as a defunct corporate shipping brand.

• 2014

  Debt restructuring and ownership transition

  [1]Excel Maritimeen.wikipedia.org

  The restructuring plan was ratified in January, reducing pre-petition debt to approximately $300 million, after which Oaktree Capital Management acquired the reorganized remains.

• 2013

  Chapter 11 filing and NYSE delisting

  [1]Excel Maritimeen.wikipedia.org

  Excel filed for pre-negotiated Chapter 11 protection and was delisted from the NYSE under exchange rules.

• 2008

  Quintana Maritime merger completed

  [1]Excel Maritimeen.wikipedia.org

  The April merger more than doubled Excel's fleet and added a major portfolio of Capesize, Kamsarmax and Panamax carriers.

• 2008

  Gabriel Panayotides became chief executive

  [1]Excel Maritimeen.wikipedia.org

  Panayotides, who had served as board chairman since 1998, was appointed CEO.

• 2005

  New York Stock Exchange listing

  [1]Excel Maritimeen.wikipedia.org

  Excel Maritime was first listed on the NYSE on September 15.

• 1998

  Relisted as Excel Maritime Carriers

  [1]Excel Maritimeen.wikipedia.org

  The acquired public company was relisted on the AMEX under the Excel Maritime Carriers name.

• 1997

  B&H Maritime acquired

  [1]Excel Maritimeen.wikipedia.org

  A dormant B&H Maritime, which had disposed of its assets, was acquired in October.

• 1989

  Predecessor listed on AMEX and NASDAQ

  [1]Excel Maritimeen.wikipedia.org

  B&H Maritime, the predecessor associated with Excel's public-market history, was listed on the American Stock Exchange and NASDAQ.

A publicly listed, Greece-based dry-bulk shipowner and chartering group serving international commodity trades through a diversified fleet of bulk carriers.

• Dry-bulk shipping

  Capesize bulk carriers

  Large bulk carriers used primarily for long-haul movements of heavy commodities such as iron ore and coal. Excel owned five Capesize vessels as part of its fleet in November 2009 and also inherited Capesize newbuilding commitments through the Quintana transaction.

• Dry-bulk shipping

  Kamsarmax bulk carriers

  Bulk carriers optimized for major grain, coal and other commodity routes and sized for the Kamsar port limitation. Excel acquired fourteen Kamsarmax vessels through Quintana and placed them, in part, on time charters to Bunge.

• Dry-bulk shipping

  Panamax bulk carriers

  Versatile bulk carriers capable of serving routes constrained by traditional Panama Canal dimensions. Excel operated twenty-one Panamax vessels in November 2009, including vessels added through the Quintana acquisition.

• Dry-bulk shipping

  Supramax and Handymax bulk carriers

  Smaller dry-bulk vessels suited to a broad range of ports and commodity cargoes. Excel's November 2009 fleet included two Supramax and five Handymax vessels.

• 2013

  Enter pre-negotiated Chapter 11Other

  Background

  A weak dry-bulk market, lower charter earnings and a large debt burden placed pressure on the enlarged fleet and capital structure.

  Action taken

  Excel filed a pre-negotiated Chapter 11 case on July 1, 2013.

  Aftermath

  Bondholders negotiated revised terms, the plan was ratified in January 2014, management was replaced after the restructuring, and Oaktree Capital Management acquired the reorganized remains.

  Pre-petition debt. Approximately US$920 million → Approximately US$300 million (2013-2014 restructuring)

  Source

• 2008

  Acquire Quintana MaritimeM&A

  Background

  Excel sought to expand its dry-bulk fleet and operating scale during a period of strong shipping-market activity.

  Action taken

  The company agreed to acquire Quintana Maritime for a combination of cash and Excel common shares, with the transaction completed on April 15, 2008.

  Aftermath

  The deal more than doubled the fleet but also added substantial financing obligations and newbuilding exposure.

  Transaction value. Approximately US$1.44 billion (Announced January 2008; completed April 15, 2008)

  Source

1. 1Excel Maritimeen.wikipedia.org