Contact Information: Contacts: Company: George Syllantavos CFO Star Bulk Carriers Corp. 7 Fragoklisias Street Maroussi 15125 Athens, Greece E-mail: ir@starbulk.com www.starbulk.com Investor Relations / Financial Media: Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue, Suite 1536 New York, NY 10169 Tel. (212) 661-7566 E-mail: nbornozis@capitallink.com www.capitallink.com
Star Bulk Announces Updated Employment Status of Star Beta
| Source: Star Bulk Carriers Corp.
ATHENS, GREECE--(Marketwire - October 16, 2008) - Star Bulk Carriers Corp. (NASDAQ : SBLK )
("Star Bulk") today announced a change in the employment status of a
Capesize vessel in its fleet, the Star Beta, and a dispute relating to that
change.
The Star Beta, a 1993-built Capesize vessel of 174,691 dwt., was time
chartered by Star Bulk to Industrial Carriers Inc. of Ukraine ("ICI").
Under the related time charter agreement, ICI was obligated to pay Star
Bulk a gross daily charter hire rate of $106,500 until February 2010. In
turn, ICI sub-chartered the vessel for one year to Oldendorff Gmbh & Co. KG
of Germany ("Oldendorff") at a gross daily charter hire rate of $130,000
until February 2009.
ICI has assigned its rights and obligations under the sub-charter to Star
Bulk in exchange for it being released from the remaining term of the ICI
charter.
Oldendorff has notified Star Bulk that it considers the assignment of the
sub-charter to be an effective repudiation of the sub-charter by ICI. Star
Bulk believes that the assignment is valid and that its position will
prevail in this dispute.
According to press reports, a branch office of ICI has today filed an
insolvency proceeding in the Greek courts.
About Star Bulk
Star Bulk is a global shipping company providing worldwide seaborne
transportation solutions in the dry bulk sector. Star Bulk's vessels
transport major bulks, which include iron ore, coal and grain and minor
bulks such as bauxite, fertilizers and steel products. Star Bulk was
incorporated in the Marshall Islands on December 13, 2006 and is
headquartered in Athens, Greece. Its common stock and warrants trade on the
NASDAQ Global Market under the symbols "SBLK" and "SBLKW" respectively.
Currently, Star Bulk has an operating fleet of twelve dry bulk carriers.
The total fleet consists of four Capesize and eight Supramax dry bulk
vessels with an average age of approximately 9 years and a combined cargo
carrying capacity of 1,106,250 deadweight tons.
Forward-Looking Statements
The information in this press release may contain forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include, but are not limited to,
statements regarding: (1) the delivery and operation of assets of Star
Bulk; (2) Star Bulk's future operating or financial results; (3) future,
pending or recent acquisitions, business strategy, areas of possible
expansion, and expected capital spending or operating expenses; (4) drybulk
market trends, including charter rates and factors affecting vessel supply
and demand; and (5) other statements identified by words such as
"anticipate," "believe," "plan," "estimate," "expect," "intend," "will,"
"should," "may," or words of similar meaning.
Such forward-looking statements are based upon various assumptions, many of
which are based, in turn, upon further assumptions, including without
limitation, Star Bulk's examination of historical operating trends, data
contained in their records and other data available from third parties.
Although Star Bulk believes 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 their control, Star Bulk cannot assure you that Star
Bulk will achieve or accomplish these expectations, beliefs or projections.
Important factors that could cause actual results to differ materially from
those discussed in the forward-looking statements include the failure of a
seller to deliver one or more vessels, the strength of world economies and
currencies, general market conditions, including changes in charterhire
rates and vessel values, changes in demand that may affect attitudes of
time charterers to scheduled and unscheduled drydocking, changes in Star
Bulk's operating expenses, including bunker prices, dry-docking and
insurance costs, or actions taken by regulatory authorities, potential
liability from pending or future litigation, domestic and international
political conditions, potential disruption of shipping routes due to
accidents and political events or acts by terrorists. Additional factors
that could cause Star Bulk's results to differ materially from those
described in the forward-looking statements can be found in Star Bulk's
Registration Statement on Form F-1/F-4, Annual Report on Form 20-F for the
year ended December 31, 2007 and reports on Form 6-K filed with the
Securities and Exchange Commission (the "SEC") and available at the SEC's
Internet site (http://www.sec.gov). The information set forth herein speaks
only as of the date hereof, and Star Bulk disclaims any intention or
obligation to update any forward-looking statements as a result of
developments occurring after the date of this communication.