Greece: Paragon Shipping Reaches Agreement with Commerzbank

Paragon Shipping Inc., announced today that it has entered into a binding agreement with Commerzbank AG, subject to certain conditions and final documentation, to amend terms in its loan agreement dated August 12, 2011.

More specifically, the Company has obtained waivers and Commerzbank has agreed to the relaxation of several financial and security coverage ratio covenants, and to the deferral of a portion of its scheduled quarterly installments. This agreement is subject to the satisfaction of a number of conditions similar in nature to our agreements with other lenders of the Company announced by the Company on December 12, 2012, and includes the execution of documentation.

Commenting on the agreement, Michael Bodouroglou, the Company’s Chairman and Chief Executive Officer stated, “We are happy to announce an agreement with our largest lender, Commerzbank, as we work towards a common goal of ensuring the Company’s continued stability. We believe we will enter into agreements with our remaining two lenders in due course.”

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Paragon Shipping, December 17, 2012