d1005772_6-k.htm

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's “home country”), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Attached as Exhibit 1 to this report on form 6-K is a copy of the press release of Paragon Shipping Inc. (the “Company”) dated June 23, 2009, announcing a new charter and extensions to existing charters and includes the Company’s current fleet table as of the date hereof.

ATHENS, Greece, June 23, 2009 - Paragon Shipping Inc. (Nasdaq: PRGN), a global shipping transportation company specializing in drybulk cargoes, announced today amendments to several of its long term time charters. The Company has entered into a new two year time charter contract for the Deep Seas and has renegotiated the terms to the time charter contract for the Crystal Seas. The Company has also extended the charter period on the existing charter for the Clean Seas, and has obtained an option, at the Company’s election, to extend the charter for the Pearl Seas. Details of all of the Company’s current time charters, including current gross daily charter hire rates and charter terms, are set forth in the table below.

Commenting on these recent developments, Michael Bodouroglou, Chairman and Chief Executive Officer of Paragon Shipping, stated, “We are extremely pleased that we have been able to continue our relationship with Morgan Stanley who has agreed to take the Deep Seas on charter for an additional two years after the expiry of the existing two year charter. The renewal of the charter underlines the quality of service we are providing to our charters and the confidence they have in our operations. We are also pleased with our negotiations for the extension of the charters on the Pearl Seas and Clean Seas and the renegotiated terms on the Crystal Seas charter. We believe that the extensions and renegotiations will further strengthen our business relationship with two of the world’s leading charters.”

Mr. Bodouroglou concluded, “These new charter arrangements will increase our fixed revenue days in 2010 and 2011 from 55% and 38% to 72% and 49%, respectively at rates that continue to provide for solid free cash flow. Furthermore, our contracted gross revenue under our existing charters shall increase as a result of these charters by an additional $27.9 million, assuming our exercise of available option periods. Moreover, our contracted fleet gross revenue from our period time charters will be an estimated $300 million.”

Vessel

Name

Vessel

Type

Year

Built

Charterer

Name

Gross Daily

Charter Rate(1)

Re-Delivery from

Charterer (2)

Earliest

Latest

Blue Seas (3)

Handymax

1995

Ultrabulk

$9,000

Jul. 2009

Oct. 2009

Clean Seas (4)

Handymax

1995

Cosco Bulk

$9,000

Jan. 2011

Mar. 2011

Crystal Seas (5)

Handymax

1995

Cosco Bulk

$23,000

Aug. 2011

Nov. 2011

Deep Seas (6)

Panamax

1999

Morgan Stanley

$34,250

Sept. 2009

Dec. 2009

Calm Seas

Panamax

1999

Korea Line Corp.

$37,000

Jan. 2010

Apr. 2010

Kind Seas

Panamax

1999

Deiulemar Shipping

$45,500

Nov. 2011

Feb. 2012

Sapphire Seas (7)

Supramax

2005

Korea Line Corp.

$26,750

May 2010

Jul. 2010

Pearl Seas (8)

Panamax

2006

Korea Line Corp.

$37,300

Aug. 2011

Oct. 2011

Diamond Seas

Panamax

2001

Vespucci Marine

$27,500

May 2010

July 2010

Coral Seas

Panamax

2006

Bunge

$54,000

Dec. 2009

Mar. 2010

Golden Seas (9)

Panamax

2006

Deiulemar Shipping

$43,500

Sep. 2011

Nov. 2011

Friendly Seas (10)

Supramax

2008

Deiulemar Compagnia

$33,750

Apr. 2014

Aug. 2014

(3)

On November 24, 2008, we agreed with Ultrabulk S.A. to enter into a new time charter agreement regarding the next employment of Blue Seas for a period of approximately eight to 10 months at a gross daily charter rate of $7,750 for the first 50 days and $9,000 for the balance period. The time charter commenced on December 2, 2008 and will expire between July 23, 2009 and October 12, 2009.

(4)

On April 15, 2009, we entered into an agreement with Cosco Bulk Carrier Co. Ltd. to extend the employment of Clean Seas for a period of 12 to 14 months commencing on January 4, 2010 at a gross daily charter rate of $17,250. The vessel is currently employed on a time charter that commenced on January 25, 2009 and ends on January 4, 2010.

(5)

On April 15, 2009, we agreed with Cosco Bulk Carrier Co. Ltd. to reduce the gross daily charter rate for Crystal Seas to $23,000 per day for the period commencing May 1, 2009 and ending December 31, 2009. As of January 1, 2010, the daily charter rate will return to its original level of $33,000 per day and will be payable until the expiration of the charter period.

(6)

On June 2, 2009, we agreed with Morgan Stanley to enter into a new time charter agreement regarding the next employment of Deep Seas at a net daily charter rate of $15,000 for a period of 24 to 28 months. The time charter will commence on September 1, 2009 and will expire between September 1, 2011 and December 31, 2011.

(8)

On June 17, 2009, we agreed with Korea Line Corporation to reduce the gross daily charter rate for Pearl Seas to $37,300 per day from June 23, 2009 until the expiration of the charter period. We also agreed to extend the current employment of Pearl Seas for an optional period (at our option) of 26 to 28 months commencing on August 11, 2011 at a gross daily charter rate of $32,500. Should the panamax spot market increase above $32,500 per day (based on the previous quarterly average of the BPI), then an additional amount above such level shall be shared 50/50 between us and the charterer. The time charter commenced on September 11, 2008 and assuming all extension options are exercised, will expire between October 11, 2013 and December 11, 2013.

(9)

The charter of the Golden Seas was originally entered into with Transfield Shipping Inc., which in turn sub-chartered the vessel to Deiulemar Shipping S.P.A. On March 25, 2009, Transfield Shipping Inc. assigned all of its rights under the sub-charter to us. The terms of the sub-charter assigned to us are identical to the original charter with the exception of the daily charter rate, which is $43,500.

(10)

On June 17, 2008, we agreed with Deiulemar Compagnia di Navigazione S.P.A. to enter into a new time charter agreement regarding the next employment of Friendly Seas at a gross daily charter rate of $33,750 for a period of 58 to 62 months, and a commission of 6.25%. The time charter commenced June 5, 2009.

Paragon Shipping Inc. is an Athens, Greece-based international shipping company specializing in the transportation of drybulk cargoes. The Company’s current fleet consists of twelve vessels with a total carrying capacity of 765,137 dwt.

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for drybulk shipping capacity, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, the market for our vessels, charter counterparty performance, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

	Paragon Shipping Inc.


Dated: June 24, 2009	By:	/s/ Christopher J. Thomas
	Name:	Christopher J. Thomas
	Title:	Chief Financial Officer