After Brief Comeback, DryShips Crashes Back To Earth


DryShips (DRYS) has been a great, if extremely levered, proxy on global trade… soaring during the boom times, then collapsing over 90% and then quintupling over the last couple months on hopes of a rebound. And now its back in collapse mode. The stock fell 25% today, following several days of declines.

Maybe shipping rates will come back, but in the meantime the company is losing cash and now finds itself in debt violations:

FT: DryShips, a New York-listed shipowner already facing a heavy debt burden, is likely to retain the liability for a $650m debt accumulated to build an offshore oil-drilling business it now wants to spin off, the company has admitted.

The company is also in breach of the conditions on nearly half its $3bn borrowings and has no guarantee that it will be able to reach agreement with its creditor banks about changing the conditions, it has declared in filings with the US Securities and Exchange Commission (SEC).

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DryShips Plunges After Divideng, Growth Slashed