Cash-strapped Dryships has sold its stake in offshore rig owner Ocean Rig for $49.9m, as well as selling three vessels to its chairman and ceo George Economou.

Dryships stake in Ocean Rig was sold for $49.9m to a subsidiary of Ocean Rig and the proceeds from the sale will be used to partly reduce the outstanding amount under the company’s revolving credit facilities provided by a company controlled by Economou.

Dryships is also selling three vesselsFakarava, Rangiroa and Negonego to companies controlled by Economou reducing the company’s total bank debt at $102.1m to $213.7m.

“We are pleased to have reached a preliminary agreement with one of our lenders to waive any events of default and we hope that the rest of the lenders follow suit, recognizing the pro-active approach of the Company to reduce its debt burden and cash flow burn,” said Ziad Nakhleh, cfo of Dryships.

Following the sale of the vessels Dryships has a fleet of 20 panamax bulkers and six offshore support vessels.