Economou Takes Over Larger Part of DryShips’ Debt

Image Courtesy: Nasdaq

Greece-based owner of dry bulk carriers and offshore support vessels DryShips revealed that its chairman and CEO George Economou has taken over the majority of the company’s debt. 

Namely, a company controlled by Economou has become the lender of record under DryShips’ USD 85.1 million syndicated loan previously arranged by Germany’s HSH Nordbank.

Following this transaction, entities affiliated by Economou control “the vast majority” of DryShips’ debt outstanding with total aggregate principal amount outstanding of USD 154.5 million.

The company further said that the remaining debt of USD 16.5 million is associated with third party commercial lenders with which DryShips has either reached or is in discussions to reach an amicable settlement.

“With more than 90% of our debt now in the hands of our founder, it is safe to conclude that the company is no longer in any danger from its lenders exercising any of their rights under the company’s existing defaults under their respective loan agreements,” Anthony Kandylidis, executive vice president and interim CFO, said.

He added that DryShips is already in discussions with Economou to amend the company’s debt and regain compliance.

Last month, DryShips decided to sell its preferred shares for gross proceeds of USD 20 million to British Virgin Islands-registered Kalani Investments Limited. DryShips also said it may further receive up to USD 80 million if all of the preferred warrants are exercised, for total proceeds of USD 100 million.

The company said that the net proceeds from the sale would be used for general corporate purposes and/or to repay indebtedness under one or more of existing credit facilities and/or to repay indebtedness incurred under the Revolving Facility with Sifnos Shareholders Inc.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jan 2018 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

APM – ASIA PACIFIC MARITIME 2018

27 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia trusted by generations of industry professionals.

read more >

Mega Cargo Show 2018

The focus of the event is to bring all connected with cargo fraternity on a single platform…

read more >

Vietship 2018

Vietship is the largest and longest established exhibition in Vietnam featuring all aspect of Shipbuilding, Shipping and Offshore Technology.

Since its first event in 2002, Vietship has become the convergence and platform of advanced technologies regional and worldwide in shipbuilding and ship repair, marine equipment, waterway transportation and services, marine and offshore engineering.

After 16 years of eight consecutive editions, Vietship has affirm itself as an important event in enhancing cooperation and development, attracting investments, exchanging technology and creating ideal opportunities for trade promotion in the international maritime industry.

More info

read more >

LNG Bunkering Summit 2018

The conference will cover the obstacles facing both the shipping and port communities, exploring developments in conversion and new builds…

read more >