June 6 (Reuters) – Dry bulk shipper DryShips Inc raised “substantial doubt” about its means to remain in enterprise after it defaulted on three financial institution amenities, hit by a chronic downturn in commodity costs and low constitution charges.

The firm’s shares fell as a lot as 26 p.c to $1.75 in prolonged buying and selling on Monday.

DryShips, which had whole liabilities of $280 million as of March 31, stated in a regulatory submitting that it was in breach of economic covenants and has elected to droop principal repayments and curiosity funds for the remaining financial institution amenities. (http://1.usa.gov/1tcW16D)

Shippers which transport commodities reminiscent of coal, iron ore and grain have been damage by tepid demand, particularly in China, and a surplus of vessels for rent.

The Baltic Exchange’s important Baltic Dry index has dropped 22 p.c to $610 because the starting of 2015. It fell as little as $290 this 12 months.

The firm had reported a close to 98 pct fall in income for the quarter ended March 31 as time constitution equal, the common each day income efficiency of a vessel on a per voyage foundation fell greater than 99 p.c.

Up to Monday’s shut, DryShips’ inventory had fallen about 88 p.c this 12 months. (Reporting by Arathy S Nair in Bengaluru; Editing by Don Sebastian)