The dry bulk operator Paragon Shipping has reached an agreement with its creditors to liquidate its remaining fleet in order to settle one of its debt obligations.
The company agrees to sell its six mortgaged vessels to unaffiliated third parties in exchange for the full and final settlement of the outstanding amount of its syndicated loan facility.
"The fleet, consisting of the handysize and panamax bulkers Coral Seas, Golden Seas, Prosperous Seas, Precious Seas, Priceless Seas and Proud Seas, is to be sold to unnamed, unaffiliated third parties," Paragon said. In exchange, it will receive “full and final settlement of the outstanding amount of the respective facility.”
Paragon also says it is in talks with Jiangsu Yangzijiang to extend the deliveries of its three Kamsarmax newbuilding drybulk carriers towards the end of 2016 at no extra cost to the company.
Paragon Shipping also had two bulkers under construction at Dayang Shipbuilding and three at Yangzijiang Shipbuilding. It haas not taken planned delivery of the first at Dayang and had canceled the second.
The firm recently skipped an interest payment on unsecured notes due to lack of liquidity, and it is looking to exchange the notes for common stock. Paragon has extended the deadline for the exchange offer until the middle of March, and says that it is “currently evaluating a number of strategic alternatives.”
Paragon Shipping is an international shipping company incorporated under the laws of the Republic of the Marshall Islands with executive offices in Athens, Greece, specializing in the transportation of drybulk cargoes.