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.