Sale of DryShips’ Bulkers Falls Flat

The sale of the three bulk carriers, Fakarava, Rangiroa and Negonego, to entities controlled by DryShips’ Chairman and CEO, George Economou has failed, the company said.

The company added that it has reached a settlement agreement with the charterer of these vessels for an upfront lumpsum payment and the conversion of the daily rates to index-linked time charters.

“Mr. Economou has expressed his desire to proceed with the sale of the vessels subject to the transfer of the existing loan at the current fair market value of the vessels and we
are in discussions with the respective lenders to achieve this,” the company added.

The owner of drybulk carriers and offshore support vessels, also said that Petroleo Brasileiro S.A. (Petrobras) has terminated the contract for its platform supply vessel (PSV) Vega Crusader effective as of March 6, 2016.

The contract of the Vega Crusader was expiring on January 8, 2017 and this termination represents a loss in contracted EBITDA of approximately USD 2.2 million for the balance of 2016.

Faced with the prolonged market downturn in the drybulk segment and the continued depressed outlook on freight rates, DryShips has launched discussions with its lenders for the restructuring of its debt facilities.

“While discussions are ongoing, the company may elect to suspend principal repayments to preserve cash liquidity. Our founding shareholder, Mr. George Economou, has expressed his continued support to DryShips throughout these discussions, subject to the continued support of all the lenders,” DryShips adds.

DryShips owns a fleet of 23 drybulk carriers, comprising 3 Capesize and 20 Panamax vessels with a combined deadweight tonnage of approximately 2.1 million tons, and 6 offshore supply vessels, comprising 2 platform supply and 4 oil spill recovery vessels.