DryShips, which owns dry bulk carriers and offshore help vessels, introduced that it offered three of its vessels together with the related financial institution debt to entities managed by the corporate’s Chairman and CEO George Economou.

The vessels, Fakarava, Rangiroa and Negonego, have been offered at truthful market worth as supported by unbiased third social gathering dealer valuations, based on an announcement.

The transaction, accepted by DryShips’ board of administrators, allowed the corporate to scale back its complete financial institution debt by $102.1 million, presently standing at $213.7 million.

In addition, DryShips has agreed to promote all of its shares in Ocean Rig UDW to an unrestricted subsidiary of Ocean Rig for about $49.9 million in money.

The sale proceeds will probably be used to partially scale back the excellent quantity underneath the revolving credit score facility offered to DryShips by an organization managed by Chairman and CEO Mr. Economou and for normal company functions.

Moreover, DryShips has inked an settlement underneath the revolving credit score facility whereby the lender has agreed to launch its lien over the Ocean Rig shares and waive any occasions of default, topic to the same settlement being reached with the remainder of the lenders to DryShips, in change for sure LTV covenants being launched underneath the revolving credit score facility.

After the transaction, which is topic to plain closing circumstances, DryShips will now not maintain any fairness curiosity in Ocean Rig.

“We are pleased to have reached a preliminary agreement with one of our lenders to waive any events of default and we hope that the rest of the lenders follow suit, recognizing the pro-active approach of the company to reduce its debt burden and cash flow burn,” DryShips CFO Ziad Nakhleh acknowledged.