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DryShips shares fall off a cliff on bankruptcy concerns

Shares of George Economou-led DryShips plunged yesterday after the Nasdaq-listed company revealed it had defaulted on three bank facilities and raised “substantial doubt” of its ability to carry on as a going concern.

Having closed on Monday at $2.36, the shares opened trading on Tuesday at just $1.44 as investors desperately offloaded shares in the company. The decline continued throughout the day with shares closing at just $1.29 – down over 45%.

DryShips fall from grace with investors has been remarkable, highlighted by Economou’s presence this week at Greek shipping event Posidonia. During the last Posidonia event, in June 2014, DryShips shares traded around the $79 mark.

Economou listed DryShips on the Nasdaq for $18 a share and the stock changed hands for as much as $2,785 per share in 2007.

Last year, DryShips posted a net loss of $2.84bn.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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