DryShips Inc (fka DRYS)

[bagfull]

MORE BAD NEWS ON DRYS

Could Retain $650M Debt Liability In Spin-Off Co -FT

Feb 1, 2009 21:32:01 (ET)


DOW JONES NEWSWIRES

DryShips Inc. (DRYS), a New York-listed shipowner already facing a heavy debt burden, is likely to retain liability for a $650 million debt accumulated to build an offshore oil-drilling business it now wants to spin off, the Financial Times reported Monday, citing the company.

The company is also in breach of the conditions on nearly half its $3 billion borrowings and can't guarantee it will be able to reach agreement with its creditor banks about changing the conditions, it has declared in filings with the U.S. Securities and Exchange Commission, the FT said on its Web site.

The SEC filing outlines DryShips' desire to spin off to its shareholders Primelead Shareholders, a subsidiary that owns offshore drilling interests including Ocean Rig ASA, an Oslo-listed company taken over in April, the FT reported.

If the spin-off were to go ahead, the company would ask its banks to release it from guaranteeing Primelead's remaining debt, the FT reported the company as saying. Without the lenders' agreement, however, DryShips will retain liability for the debt without gaining from Primelead's future income, the FT said.

Full story: http://www.ft.com/cms/s/0/a69c5afa-f0bf-11dd-972c-0000779fd2ac.html.

DOW JONES NEWSWIRES

DryShips Inc. (DRYS), a New York-listed shipowner already facing a heavy debt burden, is likely to retain liability for a $650 million debt accumulated to build an offshore oil-drilling business it now wants to spin off, the Financial Times reported Monday, citing the company.

The company is also in breach of the conditions on nearly half its $3 billion borrowings and can't guarantee it will be able to reach agreement with its creditor banks about changing the conditions, it has declared in filings with the U.S. Securities and Exchange Commission, the FT said on its Web site.

The SEC filing outlines DryShips' desire to spin off to its shareholders Primelead Shareholders, a subsidiary that owns offshore drilling interests including Ocean Rig ASA, an Oslo-listed company taken over in April, the FT reported.

If the spin-off were to go ahead, the company would ask its banks to release it from guaranteeing Primelead's remaining debt, the FT reported the company as saying. Without the lenders' agreement, however, DryShips will retain liability for the debt without gaining from Primelead's future income, the FT said.

Full story: http://www.ft.com/cms/s/0/a69c5afa-f0bf-11dd-972c-0000779fd2ac.html.