Nasdaq-listed DryShips told investors today it was forgiving $16.5m in overdue payments linked to 11 of its vessels.
For its part the charterer will walk away from in the money purchase options on seven ships and offer up fresh work at a base rate with profit share on 11 vessels.
George Economou, chief executive of DryShips, said in a statement: “We are pleased to have reached an agreement with one of our charterers that allows DryShips to put a floor on its downside while providing upside potential.
“With the negative conditions in the drybulk market we believe this is a prudent way to take advantage of market volatility.”
DryShips has not named the charterer or the vessels involved in the transaction.
It does say the new charters for 11 vessels were priced at $12,500 per day plus a 50% profit share, running from 1 June for 4.5 years.
Capesize spot rates today sat at $15,500 per day as the dry cargo market continued to push year to date highs.
DryShips last annual report said it had 13 vessels on above market contracts, while 11 of its 19 time-chartered vessels were with a single client.
All of its capesize fleet was shown to be on contracts paying between $20,000 and $55,000 per day.
The report said each of the seven vessels on which a charterer held purchase options were capesizes.
At that time all bar four of its panamaxes were trading spot, with the contracted ships on index-based deals.
Both of its supramaxes were shown to be operating on the spot market at that time.
Contract coverage of DryShips capesize fleet detailed in its 2014 annual report. (1) identified ships on which purchase options exist.
