ATHENS, Greece, April 28, 2016 /PRNewswire/ -- Paragon Shipping
Inc. ("Paragon" or the "Company") today announced the following
updates on its debt agreements, newbuilding contracts and other
corporate actions:
Newbuilding Contracts
The Company has entered into an agreement with Jiangsu
Yangzijiang Shipbuilding Co., or Yangzijiang, to extend the
deliveries of its three Kamsarmax newbuilding drybulk carriers
(Hull numbers YZJ1144, YZJ1145 and YZJ1142), to September 30, 2016, October 31, 2016 and November 30, 2016, respectively, subject to
certain conditions.
Bank of Ireland - Unsecured
Paid-in-Kind Note ("PIK Note")
In January 2016, the Company
agreed with Bank of Ireland to
apply the total net proceeds from the sale of M/V Kind Seas towards
an immediate prepayment of the loan facility. An amount of
$2.2 million was written-off and the
remaining amount of $2.2 million,
plus accrued interest, was converted into a PIK Note. The PIK Note
was non-amortizing and had a maturity date of December 31, 2020, at which time it would be
repaid at par. Interest on the PIK Note would accrue on a quarterly
basis at an interest rate equal to the aggregate of 2.5% and the
applicable LIBOR, and would be treated as payment-in-kind. On
April 11, 2016, the Company received
a notice of cancellation, pursuant to which it was discharged from
all of its obligations under the PIK Note.
Other Corporate Actions
On April 26, 2016, the Company and
Mr. Michael Bodouroglou, the
Company's Chairman, President, Chief Executive Officer and Interim
Chief Financial Officer, filed a law suit against Tradewinds and
their financial reporter, Mr. Joe Brady
Stamford for defamation damages. In particular on February
18, 2016, Tradewinds reported that the Company had obtained
its Board of Directors approval for filing bankruptcy under Chapter
11. The Company and its Board of Directors declared that the above
statement was totally untrue. The Company believes that such false
statements had a negative impact on the Company, its reputation and
stock price. The lawsuit was submitted before the Prosecutor of the
Criminal Court of Athens.
Senior Unsecured Notes due 2021
In relation to the issued and outstanding senior unsecured notes
due 2021 that bear interest at a rate of 8.375% per year
("Unsecured Notes"), the Company will not proceed with the interest
payment, which is due on May 15,
2016, due to lack of liquidity.
Forward-Looking Statements
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Act of 1995. These forward-looking statements are based on our
current expectations and beliefs and are subject to a number of
risk factors and uncertainties that could cause actual results to
differ materially from those described in the forward-looking
statements. All statements other than statements of historical fact
are statements that could be deemed forward-looking statements.
Risks, uncertainties and assumptions include the possibility that
expected benefits may not materialize as expected as well as other
risks that have been included in filings with the Securities and
Exchange Commission, all of which are available at www.sec.gov.
About Paragon Shipping Inc.
Paragon Shipping is an international shipping company
incorporated under the laws of the Republic of the Marshall Islands with executive offices in
Athens, Greece, specializing in
the transportation of drybulk cargoes. Paragon Shipping's current
newbuilding contracts consist of three Kamsarmax drybulk carriers.
The Company's common shares and Unsecured Notes trade on the NASDAQ
Capital Market under the symbols "PRGN" and "PRGNL," respectively.
For more information, visit: www.paragonship.com. The
information contained on Paragon Shipping's website does not
constitute part of this press release.
Contacts:
Paragon Shipping Inc.
ir@paragonshipping.gr
DresnerAllenCaron
Rudy
Barrio (Investors)
rbarrio@dresnerallencaron.com
(212) 691-8087
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SOURCE Paragon Shipping Inc.
