DryShips' Stock Tanks After Disclosure Of Loan Defaults

Shares of DryShips Inc. were the biggest decliners in premarket trade Tuesday, plummeting 39% toward a split-adjusted record low, after the ocean transportation company disclosed in a filing that it defaulted on three bank loans. The company said in the filing, released late Monday, that the lenders could require immediate repayment of the loans, which totaled $213.7 million. If its lenders demand repayment, DryShips said it doesn't expect cash on hand and cash generated from operations and asset sales to be sufficient to repay its loans. The stock has tumbled 46% year to date through Monday. The stock was changing hands recently at $1.43. The selloff comes after a 1-for-25 reverse stock split when into effect on March 11. The stock closed at a split-adjusted $2.73 the day before the stock split, meaning its pre-split price was about 11 cents.