March 3, 2009
DryShips reports on S&P woes
DryShips Inc. (NASDAQ: DRYS) today issued an update on how it is dealing with three recent sales and purchase headaches--by selling one ship at about half the original agreed price, canceling another deal and collecting a $9 million penalty and entering arbitration on a third deal
DryShips previously entered into an agreement to sell the M/V Paragon, a 1995 built 71,259 dwt Panamax drybulk carrier, for a sale price of approximately $61 million and has reached an agreement with the buyers that sees the price will be reduced to $30.80 million. Delivery of the vessel took place earlier today and DryShips expects to recognize a gain of approximately $2.4 million that will be recognized in the first quarter of 2009.
M/V La Jolla
DryShips previously entered into an agreement to sell the M/V La Jolla, a 1997 built Panamax drybulk carrier, for a sale price of $66 million and has agreed to settle its dispute with the buyers in connection with buyers' failure to take delivery under the relevant Memorandum of Agreement. Under the settlement agreement, DryShips has agreed to retain the vessel and has received aggregate compensation in the amount of $9 million in respect of the cancellation.
DryShips previously entered into an agreement with Samsun Logix Corporation, or Samsun, the buyers of the M/V Toro, a 1995 built 73,034 dwt Panamax drybulk carrier, to sell the vessel at a reduced price of $36 million. The buyers were obligated to remit an additional deposit of $1.5 million. The Company received notice from Samsun that it filed for receivership. Following Samsun's failure to pay the additional deposit, DryShips has commenced arbitration proceedings against Samsun claiming compensation for the difference between the current market price and the original contract price of $63.4 million pursuant to the terms of the agreement with Samsun.