Paragon Sells Ships, Defer Deliveries
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. 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.
Bulk Carrier Charter Agreement With Morgan Stanley Capital Group
Paragon Shipping Inc. (NYSE: PRGN) entered into a fixed rate time charter agreement for its Panamax Vessel, M/V Coral Seas, with Morgan Stanley Capital Group Inc. The M/V Coral Seas, a 2006 build, 74,477 dwt Panamax bulkcarrier, has been fixed to Morgan Stanley Capital Group Inc. for a period of 23 to 25 months at a gross daily rate of $12,000. In addition, the Charterers have an option to extend the charter period for an additional 11 to 13 months at a gross daily rate of $14,500. As a result, the Company’s fixed revenue days have now increased to 89% from 84% in 2012, to 66% from 59% in 2013 and to 37% from 30% in 2014 based on latest redelivery dates.
Paragon Shipping Signs Two-Year Contracts
Paragon Shipping Inc. has entered into new two-year time charter contracts for the Calm Seas and the Coral Seas. Both vessels have been forward fixed on period time charters for 23 to 26 months at a gross daily rate of $15,775 per vessel with Intermare Transport GMBH. Michael Bodouroglou, Chairman and Chief Executive Officer of Paragon Shipping, commented that the contracts are scheduled to commence between December 2009 and April 2010.
