Posted on September 14, 2015
By Carl Surran, Seeking Alpha
DryShips (DRYS -36.8%) plunges on news it agrees to sell 17 of its bulkers to other entities controlled by Chairman/CEO George Economou, a move analysts say is part of a longer-term plan to recapitalize the business.
The 13 Capesize and four Panamax bulk carriers are being sold for a combined $377M, including their existing employment agreements and the assumption of $236M of debt.
DRYS says it will recognize a ~$373M related impairment charge in its Q3 results as a result of the sale; also, DRYS says it will classify all remaining vessels in its fleet, comprised of 20 Panamax and two Supramax bulk carriers, as held for sale, resulting in an additional impairment charge of ~$422M in Q3.
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