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DryShips, Inc. Message Board

  • dvrste dvrste Oct 4, 2013 9:58 PM Flag

    Financial situation in plain english would be novel for this co.

    Points to ponder:: They own 59% of ORIG ---this investment is not found on their balance sheet ($1.4 billiom) . They owned 100% a couple of years back, I believe, but have pledged about 40% of those shares for the new builds of ORIG. They do show detailed info on bank debt--- none matures in 2014. The discussion of 2d qtr finances gives details which portrays an excess of funds over debt ( counting the investment value of ORIG as funds.) They further state time & again that they are working with their banks to remedy deficiencies under loan covenants. ( To my CPA nose that would mean financial ratios which are not in compliance with the loan requirements) There is no estimate of what it will take to cure the deficiencies ( pledge more shares of ORIG) The co does not seem to generate sufficient cash to retire the $700 million convertible debt which matures in December of 2014. ( It is not rated and trades below par) I am a holder of this debt and have hopes that somehow they will take a dividend from ORIG and that, combined with other financing will do the trick. Going forward, they need to see continued improvement in operational results.

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