UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2016
Commission File Number: 001-33655
PARAGON SHIPPING INC.
(Name of Registrant)
15 Karamanli Ave., GR 166 73, Voula,
Greece
(Address of principal
executive office)
Indicate
by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form
20-F x
Form 40-F ¨
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
INFORMATION
CONTAINED IN THIS REPORT ON FORM 6-K
Attached to
this Report on Form 6-K as Exhibit 99.1 is a copy of the press release of Paragon Shipping Inc. (the "Company"), dated
March 9, 2016, providing an update on its debt agreements and newbuilding contracts.
Exhibit 99.1
of this report on Form 6-K is hereby incorporated by reference into the Company's Registration Statement on Form F-3 (File No.
333-192517) filed with the U.S. Securities and Exchange Commission with an effective date of January 8, 2014.
SIGNATURE
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
|
PARAGON SHIPPING INC. |
|
|
|
Date: March 10, 2016 |
By: |
/s/ GEORGE SKRIMIZEAS |
|
George Skrimizeas |
|
Chief Operating Officer |
Exhibit 99.1
![](http://www.sec.gov/Archives/edgar/data/1401112/000161577416004434/tex99-1logo.jpg)
Paragon Shipping Inc. Announces Recent
Developments on its Debt Agreements and Newbuilding Contracts
March 9, 2016 – Athens, Greece
– Paragon Shipping Inc. (“Paragon” or the “Company”) today announced the following updates on its
debt agreements and newbuilding contracts:
Syndicated Loan Facility dated
May 6, 2014
On March 9, 2016, the Company agreed
with the syndicated banks, subject to certain conditions, to sell the mortgaged vessels, namely the M/V Coral Seas, the M/V Golden
Seas, the M/V Prosperous Seas, the M/V Precious Seas, the M/V Priceless Seas and the M/V Proud Seas, to unaffiliated third parties
in exchange for the full and final settlement of the outstanding amount of the respective facility.
Newbuilding Contracts
The Company is currently in discussions
with Jiangsu Yangzijiang Shipbuilding Co., or Yangzijiang, to extend the deliveries of its three Kamsarmax newbuilding drybulk
carriers (Hull numbers YZJ1144, YZJ1145 and YZJ1142), towards the end of 2016, subject to certain conditions, at no extra cost
to the Company. The balance due to Yangzijiang for the delivery of the three Kamsarmax newbuildings is currently higher than the
estimated market value of these vessels.
In addition, the Company did not take
delivery of the Ultramax newbuilding drybulk carrier with Hull no. DY4050 from Yangzhou Dayang Shipbuilding Co. Ltd., or Dayang,
that was scheduled to be delivered in the fourth quarter of 2015. Furthermore, the Company sent to Dayang a notice for the cancellation
of the Ultramax newbuilding drybulk carrier with Hull no. DY4052 that was scheduled to be delivered before the end of December
2015. Dayang rejected such cancellation notice and the case is currently under arbitration proceedings in London.
8.375% Senior Unsecured Notes
due 2021 (“Unsecured Notes”)
In relation to the issued and outstanding
Unsecured Notes, the Company did not proceed with the interest payment of $0.5 million, which was originally due on February 16,
2016, due to lack of liquidity. Pursuant to the Unsecured Notes indenture, the Company is under the 30-day grace period to make
such payment that will expire on March 17, 2016. The Company is still lacking the liquidity to make the $0.5 million interest payment
upon the expiration of the said grace period.
The Company has already announced an
offer, as further amended and extended, to exchange all properly delivered and accepted Unsecured Notes for shares of Paragon’s
common stock by 5:00 p.m. (New York City time) on March 18, 2016 (the “Extended Expiration Date”). Settlement for all
of the Unsecured Notes validly delivered and not withdrawn on or before the Extended Expiration Date, will be on March 23, 2016.
Each holder of an Unsecured Note (each a “Holder” and collectively the “Holders”) who validly delivers
and does not withdraw all Unsecured Notes held by such Holder, shall receive four (4) shares of Paragon’s common stock for
each Unsecured Note, which shall include any accrued and unpaid interest thereon (the “Exchange Offer”). As part of
the Exchange Offer, Holders will also be required to consent to the removal of certain covenants and sections of the Paragon Notes’
Indenture dated August 8, 2014.
The Company is currently evaluating
a number of strategic alternatives.
Conference Call Details
The Company’s management team
will host a conference call to discuss recent developments and details regarding the Exchange Offer on March 15, 2016, at 9:00
am Eastern Time.
Participants should dial into the call
ten minutes before the scheduled time using the following numbers 1-888-348-8931 (USA) or +1-412-902-4248 (international) to access
the call. A replay of the conference call will be available for seven days and can be accessed by dialing 1-877-870-5176 (USA)
or +1-858-384-5517 (international) and using passcode 10082520.
Forward-Looking Statements
Certain statements in this press release
are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These forward-looking
statements are based on our current expectations and beliefs and are subject to a number of risk factors and uncertainties that
could cause actual results to differ materially from those described in the forward-looking statements. All statements other than
statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any
statements regarding the Exchange Offer and Consent Solicitation. Risks, uncertainties and assumptions include the possibility
that expected benefits may not materialize as expected as well as other risks that have been included in filings with the Securities
and Exchange Commission, all of which are available at www.sec.gov.
About Paragon Shipping Inc.
Paragon Shipping is an international
shipping company incorporated under the laws of the Republic of the Marshall Islands with executive offices in Athens, Greece,
specializing in the transportation of drybulk cargoes. Paragon Shipping’s current fleet consists of six drybulk vessels with
a total carrying capacity of 297,879 dwt. In addition, Paragon Shipping’s current newbuilding contracts consist of three
Kamsarmax drybulk carriers. The Company’s common shares and Paragon Notes trade on the NASDAQ Capital Market under the symbols
“PRGN” and “PRGNL,” respectively. For more information, visit: www.paragonship.com. The information contained
on Paragon Shipping’s website does not constitute part of this press release.
Contacts:
Paragon Shipping Inc.
ir@paragonshipping.gr
DresnerAllenCaron
Rudy Barrio (Investors)
rbarrio@dresnerallencaron.com
(212) 691-8087
Paragon Shipping (CE) (USOTC:PRGNF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Paragon Shipping (CE) (USOTC:PRGNF)
Historical Stock Chart
From Jul 2023 to Jul 2024