Petrobras cancels Dryships PSV charter

Petrobras cancels Dryships PSV charterBrazilian oil company Petrobras has terminated a contract for a Dryship-owned platform supply vessel.

According to Dryships, the Brazilian oil firm has given notice of termination on the contract for the platform supply vessel (PSV) Vega Crusader effective as of March 6, 2016.

The contract of the Vega Crusader was expiring on January 8, 2017 and this termination represents a loss in contracted EBITDA of approximately $2.2 million for the balance of 2016.

Furthermore, Dryships said, given the prolonged market downturn in the drybulk segment and the continued depressed outlook on freight rates, the company is presently engaged in discussions with its lenders for the restructuring of its debt facilities. While discussions are ongoing, the company may elect to suspend principal repayments to preserve cash liquidity, Dryships.

Dryships said that its founding shareholder, George Economou, has expressed his continued support to DryShips throughout these discussions, subject to the continued support of all the lenders.

The sale of the Fakarava, Rangiroa and Negonego to entities controlled by Chairman and CEO George Economou has failed.

“In addition, we have reached a settlement agreement with the charterer of these vessels for an upfront lumpsum payment and the conversion of the daily rates to index-linked time charters. Mr. Economou has expressed his desire to proceed with the sale of the vessels subject to the transfer of the existing loan at the current fair market value of the vessels and we are in discussions with the respective lenders to achieve this,” Dryships said.

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