DryShips has launched multi-pronged negotiations to tackle a December due date to pay off $700m in convertible bonds, says chief executive George Economou.

He told analysts that the New York-listed shipowner is in direct talks with holders of the debt securities in addition to discussions with banks for a loan as part of a wider refinancing of the bonds.

The negotiations are among the bulker and tanker owner’s continuing efforts to shore up liquidity while some of its bank loans remain in breach of covenants and it faces the eventual need to repay the convertible bonds, although they are not due for months.

“We