New York-listed Paragon watched its stock slide nearly 6.94% to $3.35 after turning in a deficit of $18.9m on net revenue of $11.6m.
In the comparable period a year prior the Athens-based company squeezed out a profit of $0.3m after generating $19.7m.
Chief executive Michael Bodouroglou blamed the adjusted result, which amounted to a loss of $0.1m or two cents a share, on charter defaults and dire markets.
“[We] continue to be negatively impacted by the defaults of KLC (Korea Line Corp) and Deiulemar along with the renewals of some of our legacy time charters at prevailing charter rates that are below breakeven levels, a situation that we expect to continue through 2014,” he told investors.
Bodouroglou said Paragon pushed back the delivery of two bulkers and a pair of containerships in a bid to preserve cash and said it still seeking covenant waivers and other loan adjustments that will help ensure the owner remains current on all of its obligations “during the prevailing negative market conditions”.
In its latest earnings report the company admitted it hasn’t regained compliance with “several financial and security coverage ratio” covenants and warned shareholders that its banks may accelerate indebtedness and foreclose on some of its ships if they fail to find a “mutually acceptable resolution” .
