“To Vima” exclusive: Th. Angelopoulos confirms loss of drillships

Greek shipping magnate Theodoros Angelopoulos has confirmed a report in the Sunday edition of To Vima, according to which he has lost possession of two drill ships – the Deep Sea Metro I and Deep Sea Metro II.

In his statement, Mr. Angelopoulos explained that in response to the oil crisis, his company took the bold decisions to pull out from the investment into the two drillships. He clarified that his company is pulling out as an investor and not as a manager and stressed that this consensual process will not affect any other commercial activities.

According to the article which was published in To Vima on Sunday, Mr. Angelopoulos failed to make the payment on time to the creditors of the Metro Exploration Holding Corporation, which controls the two drillships. The bond loan stock holders held a general meeting in Oslo on the 29^th of May, where it was decided to transfer Metro Drilling Holding Coroporation’s stock to a company established exclusively for this purpose.

This a is a major blow to Mr. Angelopoulos, who aside from jeopardizing his reputation in the shipping industry, he will also lose about 700 million dollars which he personally invested in the construction of the two drillships. The bond loan in question was worth 186 million dollars and according to the agreement, Metro Exploration, the parent company of the Metro Drilling Holding Corp, would have to pay the bond holders interest payments worth 38 million dollars within two years.

The two drillships were ordered in 2008 at an initial cost of 1.7 billion dollars and which increased to 2 billion dollars including modifications. The major investment is thought to have failed because favorable contracts were not secured and the cost of oil is low. Drillships are considered to be profitable when the value of oil is over 100 dollars per barrel, however with prices having plummeted in recent times, the ships are not currently being used.

Aside from pulling out of the major investment, Mr. Angelopoulos has also put eight VLCC type craft for sale, which are currently being constructed, but has yet to find a buyer. These developments have raised questions regarding Mr. Angelopoulos’ financial state, which will be addressed in September, when he is to receive the eight vessels and expected to pay them off.