Paragon Shipping has entered into an agreement with Unicredit Bank, the last of its credit lenders, which will discharge the shipping company from all of its loan obligations.
The agreement includes a waiver of the $8,317,750 left in outstanding debt, in exchange for the payment of $50,000 in interest.
In March, the Athens-based company agreed with its banks to sell off its entire fleet of six bulk carriers in exchange for full and final settlement of its outstanding debt.
Paragon’s common stock began trading on the OTC Markets’ OTCQB Venture Market on June 6, after the company voluntarily moved its listing from the NASDAQ Capital Market.
The company’s board determined the company was unlikely to regain compliance with the minimum stockholders’ equity requirement within the time frame required by NASDAQ.