Paragon Shipping Sells Vessel to Chop Loan

Greek dry bulk shipping company Paragon Shipping Inc. has sold its 72,493 dwt Panamax bulk carrier M/V Kind Seas for USD 3.5 million to an unaffiliated third party. 

The total net proceeds of the vessel sale will be paid towards an immediate prepayment of the company’s loan facility with Bank of Ireland.

Paragon Shipping said that of the remaining loan principal amount of USD 4.4 million, a total of USD 2.2 million will be written-off subject to certain conditions and USD 2.2 million, plus any accrued interest, was converted into an unsecured paid-in-kind note (PIK Note).

“We are pleased to announce the above transaction that improves considerably our cash flow. Also, the ability to write-off a portion of the loan improves further the overall leverage of the company. We remain committed to take any appropriate actions that preserve our liquidity in these extremely adverse market conditions,” Michael Bodouroglou, Chairman, President and Chief Executive Officer of the company, said.

Paragon has the option to convert the PIK Note into its Class A common shares at any time until the maturity date and based on the twenty-day average closing price of the shares immediately prior to the conversion date.