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DryShips to Sell 17 Vessels for a Huge Loss

September 11, 2015

 

DryShips Inc. a global provider of marine transportation services for drybulk cargoes, and through its affiliate, Ocean Rig UDW Inc., of off-shore contract drilling oil services, announced today that it has entered into firm sales agreements with entities controlled by the Company’s Chairman and Chief Executive Officer, George Economou, to sell 17 vessels.

The 17 vessels, comprised of 13 Capesize and 4 Panamax bulk carriers, are being sold for an aggregate price of $377.0 million, including their existing employment agreements and the assumption of $236.7 million of debt as of September 10, 2015, associated with some of the vessels. All of the individual transactions are expected to close in the fourth quarter of 2015 and certain transactions remain subject to the approval of the applicable lending banks. These transactions were approved by the independent directors of the Company.

As a result of the Company’s decision to sell these vessels, the Company expects to recognize an impairment charge of approximately $373 million in its results for the third quarter of 2015.

In addition, the Company’s Board of Directors, has decided to classify all of the remaining vessels in the fleet, comprised of 20 Panamax and 2 Supramax bulk carriers, as held for sale, and as a result the Company expects to recognize an additional impairment charge of approximately $422 million in its results for the third quarter of 2015.

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