Paragon Shipping’s founder, chairman and CEO Michael Bodouroglou has published an open letter to shareholders, saying the company is doing all it can to survive the lows of the current shipping market cycle.
“I find that steering Paragon through a long, cyclical downturn is just that: a lot of hard work. We need to continue to work hard, stick to our plans, and ultimately get through these hard times,” Bodouroglou told investors.
“I can promise you we will be ready when the dry bulk sector begins to rebound. If I didn’t think this was a battle we could win, I wouldn’t be in the fight. I am a significant Paragon shareholder myself. Our interests are aligned,” he wrote.
Paragon, which has been listed in the OTC market since delisting from NASDAQ this year, is “working closely” with its lenders in order to improve its position, ready for a market upturn, the CEO said.
“It’s difficult to predict exactly when the cycle will turn. The analysts who follow shipping are quite often wrong. Experience tells us that change often comes when you least expect it. And when it comes, things can change quickly,” Bodouroglou continued.
Paragon’s share price has fallen 97.2% over the past 12 months. The stock opened today at $0.73 per share today.
In mid-June, Paragon signed an agreement with Unicredit Bank, the last of its credit lenders, that discharged the company from all of its loan obligations. The deal waived $8,317,750 in outstanding debt in exchange for the payment of $50,000 in interest.
The company sold off its entire fleet of six dry bulk carriers in March, in exchange for full and final settlement of its $135m outstanding debt on the ships.
Bodouroglou also observed that Paragon has made efforts to “preserve cash liquidity” and in March raised $1m by selling a series of convertible notes. But only around 18.8% of the outstanding 8.375% senior notes due 2021 were delivered and converted into Paragon shares in the note sale.
