Paragon Shipping to Settle Debt through Vessel Sale

Paragon Shipping Athens-based Paragon Shipping Inc. has entered into an agreement with Commerzbank AG for the settling of all amounts outstanding under a USD 57 million facility in exchange for the net sale proceeds of three mortgaged vessels. Under the facility, approximately USD 38.2 million is currently outstanding, which will be paid by the net sale proceeds of Diamond Seas, Pearl Seas and Sapphire Seas. Paragon said that the vessels have been committed for sale to an unaffiliated third party under separate Memoranda of Agreement and are expected to be delivered to their buyer by 12 February 2016. Further details on the buyer have not been disclosed. Paragon Shipping’s current fleet consists of twelve drybulk vessels with a total carrying capacity of 719,769 dwt. The company has signed newbuilding contracts for two Ultramax and three Kamsarmax drybulk carriers that are scheduled to be delivered between the fourth quarter of 2015 and the first quarter of 2016.