Paragon Shipping has commenced an offer to exchange all 8.375% senior notes due 2021 for shares of common stock. One Paragon note will be worth six shares of common stock. The exchange offer will expire on October 14.
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.
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.
WOW, This a First!!! Uncredit Bank, Just gave Paragon Shipping a Free Pass on Its Debt Load. Paragon Shipping, Which still owed Unicredit Bank $8.3M, Let Paragon Shipping, Instead, Pay $50,000 in Interest, and Wipe Out the $8.3M Total Debt??? Who does that.. Now this Is what Korea Development Bank, (KDV) Should be Doing for HANJIN SHIPPING., Retire Fifty (50%) of its Outstanding Debt loan for Fifty (50%) of Its Total Interest On it bank debt. Unicredit knew that Paragon Shipping, Could never, Ever pay off that loan. Seventy, (75%) of Bankrupted Loans Are written off anyways, Knowing Companies like Hanjin, Cant pay them off. So now give Hanjin a deal like this. Because, Everyone is this industries are in same boat, and if you are going to do it for Paragon Shipping, You do it for everyone, Regardless of their debt load. I never seen a bank, ever lose money on any thing. Maybe that is Why their are so many Bank out their, Throwing money at Owners. Bank have Already made their money up front, before singing on any shipping company as Clients.