DryShips transfers $85.1 million syndicated loan to CEO’s company

By Marisa Wong

Morgantown, W.Va., Dec. 2 – DryShips Inc. announced that a company controlled by its chairman and chief executive officer, George Economou, has become the lender of record under its $85.1 million syndicated loan previously arranged by HSH Nordbank.

Following this transaction, entities affiliated with Economou control the vast majority of DryShips’ debt, with a total of $154.5 million principal amount outstanding.

The remaining debt, of $16.5 million, is associated with third-party commercial lenders. The company said it has either reached or is in discussions to reach an amicable settlement with those other lenders.

Anthony Kandylidis, executive vice president and interim chief financial officer, commented in a press release, “We are very excited by the commitment shown by Mr. George Economou to assist DryShips in its efforts to reach an agreement with its financing banks.

“With more than 90% of our debt now in the hands of our founder, it is safe to conclude that the company is no longer in any danger from its lenders exercising any of their rights under the company’s existing defaults under their respective loan agreements.

“We are already in discussions with Mr. Economou to amend the company’s debt and regain compliance. In that respect, we hope to be in a position to announce further positive developments in the near future.”

DryShips is an Athens-based owner of drybulk carriers and tankers.

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