Dryships: Court Denies Restraining Order Application

Pixabay Nasdaq-listed shipowner DryShips informed on Monday that the application for a temporary restraining order filed last week in the Republic of the Marshall Islands by a plaintiff against the company and its CEO George Economou, has been denied. The temporary restraining order had sought to suspend any further issuance of new common shares by the company at a price per share below the price specified. The court ordered the parties to submit written memoranda concerning plaintiff’s application for a preliminary injunction, and if the court should determine to hold oral argument, indicated that argument would proceed before the court at 4:00 p.m. (Majuro time) on July 17, 2017, DryShips added. The application is part of a lawsuit launched by an unnamed plaintiff against the company and its CEO claiming breaches of fiduciary duty, unjust enrichment, and conflict of interest. Aside to the restraining order the plaintiff sought certain other compensatory and punitive damages specified in the complaint, as disclosed by the company earlier. On Monday, July 10, the company declared a quarterly cash dividend of USD 2.5 million to the common shareholders of record as of July 20, 2017 and payable on or about August 4, 2017. Based on its latest update, DryShips held USD 80.8 million in cash and cash equivalents, with book value of vessels, including advances, of USD 625.1 million. Its outstanding debt balance totaled USD 237.5 million, while the number of shares outstanding stood at about 26.6 million.