DryShips taps loans to close funding gap after bond fiasco

New York

DRYSHIPS Inc, the drybulk carrier that faces a potential funding shortfall as US$700 million of debt comes due in less than two months, is seeking a bank loan after a bond sale fell through over the weekend.

The shipper would use the loan in addition to sources that include a US$350 million financing from ABN Amro Group, US$100 million available in a credit line from Nordea Bank, cash on hand as well as a funding commitment from chief executive officer George Economou, according to two people with knowledge of the company's plans.