Net-Man,
Earnings came in as expected, it included a one time noncash charge of
$7.6 million for the Private Placement for near break even EBITDA.
As a review of the company's Balance Sheet and associated Notes both Note 1 and Note 8 states, as of April 5th, 2016, the company NO longer holds an equity interest in ORIG.
Furthermore, Drys gave 12 million shares to SPII for a 49% stake in Heidmar whose fair value at the time of acquisition date 8/29/17 was
$34 million. Going forward, Gains and losses from the change in Fair Value of Heidmar stake will be recognized in income by "inputs that are not corroborated by market data".
In essence, regardless of interest rate spread and curves, embedded call and put option dates and prices, stock price, etc. Essentially, a GAAP recognized spike to earnings at will with a 70 % owner who is now long on his company.
ValuHunter
