NYSE-listed container-ship owner Danaos Corporation has breached debt covenants and is moving aggressively to postpone newbuilds.
Danaos CEO John Coustas said in a statement after market close on Wednesday that despite his company’s $117M profit in 2008, “the extraordinary circumstances dictate that we take steps to prepare for a very challenging period of unknown duration”.
Coustas revealed that of 30 boxships on order, Danaos has now negotiated up to eight-month delivery delays for five vessels, for which $422M in payments are still due. He said that Danaos was in the “final stages” of delaying an additional five newbuilds for two to seven months, for which $386M remains due.
On the financing front, Danaos said that it has inked a new $299M loan facility with Deutsche Schiffsbank. Together with undrawn capacity, this will cover requirements for 2009 and a portion of 2010. Coustas added that Danaos is currently in discussions to secure additional financing for the unfunded portion of its newbuild programme.
Coustas disclosed that Danaos has breached several financial covenants and has either received waivers or is in discussions to obtain waivers. He also confirmed that the Athens-based owner will suspend dividends immediately, for an indefinite period.
Danaos CEO John Coustas said in a statement after market close on Wednesday that despite his company’s $117M profit in 2008, “the extraordinary circumstances dictate that we take steps to prepare for a very challenging period of unknown duration”.
Coustas revealed that of 30 boxships on order, Danaos has now negotiated up to eight-month delivery delays for five vessels, for which $422M in payments are still due. He said that Danaos was in the “final stages” of delaying an additional five newbuilds for two to seven months, for which $386M remains due.
On the financing front, Danaos said that it has inked a new $299M loan facility with Deutsche Schiffsbank. Together with undrawn capacity, this will cover requirements for 2009 and a portion of 2010. Coustas added that Danaos is currently in discussions to secure additional financing for the unfunded portion of its newbuild programme.
Coustas disclosed that Danaos has breached several financial covenants and has either received waivers or is in discussions to obtain waivers. He also confirmed that the Athens-based owner will suspend dividends immediately, for an indefinite period.
0 comments:
Post a Comment