January 28, 2009 / 11:14 PM / 11 years ago

UPDATE 1-DryShips in breach of some loan covenants

Jan 28 (Reuters) - DryShips Inc DRYS.O said two of its banks notified the Greek dry bulk carrier that it is in breach of certain financial covenants and it is currently in discussions with its lenders for waivers and amendments to loan covenants.

Shares of the company fell 15 percent to $10.39 in trading after the bell. They had closed up 8 percent at $12.22 Wednesday on Nasdaq.

“Two of our leading banks, which collectively held $751.8 million of our indebtedness as of December 31, 2008, have notified us that we are in breach of certain financial covenants contained in our loan agreements,” DryShips said in a filing with the U.S. Securities and Exchange Commission.

The company added that it is in talks with another lender that currently holds $650 million of its debt regarding breach of loan covenants.

DryShips also said the general decline in the drybulk carrier charter market has resulted in lower charter rates for 12 of its vessels exposed to the spot market.

For the alerts, please double-click [ID:nWNAB5078] . (Reporting by Sakthi Prasad in Bangalore; Editing by Pratish Narayanan)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below