Paragon Shipping terminates Supramax charter

Athens-headquartered Paragon Shipping Inc. (NYSE: PRGN) says that Deiulemar Compagnia di Navigazione SpA, the charterer of the M/V Friendly Seas, a 2008-built 58,779 dwt Supramax bulk carrier has continued to fail to provide payment due since January 5 and has failed to provide the vessel with voyage instructions. Accordingly, Paragon Shipping has provided written notice to the charterer of the termination of the charter, but has received no response. Paragon Shipping is currently seeking alternative employment for the vessel and will seek damages for the charterer’s breach.

Paragon warns that there can be no assurance that it will be able to employ the vessel at similar rates to those under the original charter or that it would be able to recover any claimable amounts from the charterer. It notes that current spot charter rates are significantly lower than the contracted rate under the original charter. In a January 17 statement Paragon said that the Friendly Seas charter had  a remaining duration of about 27 months (assuming earliest redelivery) at a gross daily rate of $ 33,750. 

January 30, 2012