Justin Yagerman issued the warning in a note to clients in which he said the market needs to improve down the road for the US-listed shipowner to stave off insolvency but believes its stake in Ocean Rig (ORIG) will provide the ammunition it needs to ride out the downturn for awhile longer.
“Further, and most importantly, DryShips’ ORIG stake worth $1,262m provides a valuable currency to buffer collateral value and boost liquidity if needed,” the analyst explained.
