Genco Shipping & Trading Limited (NYSE:GNK) ("Genco" or the "Company"), the largest U.S. headquartered drybulk shipowner focused on the global transportation of commodities, today issued the following statement in response to Diana's latest misleading press release:

Genco continues to outperform the market and peers, including Diana, because of the successful execution of the Board and management team's Comprehensive Value Strategy. Genco shareholders are poised to continue benefiting from robust dividend payments and increasing valuations in a strengthening drybulk market.

We are surprised to see Diana selling shares during a time of rising asset values across the industry. The Genco Board of Directors believes Diana's decision to sell Genco's stock raises questions of manipulation for the following reasons:

•  
  • Diana put out a baseless stock price target in an attempt to drive down the price of Genco shares.
     
  • Diana is selling shares to make a short-term profit, despite their stated interest in acquiring the entire Company at a fair price.
     
  • Diana is threatening the market, claiming to be a seller without simultaneously disclosing the volume, timing, price or manner of such stock sales.
    
     

Despite Diana's claims, we believe Genco's share price trajectory has not been affected by Diana's inadequate offers and proposals. Since Diana's initial offer, Genco's stock price has trended in line with peers during a period of rising valuations and freight rates across the industry. As a shipowner and operator, Diana should be well aware of increasing values across the drybulk sector even if their strategic decisions are preventing them from capturing upside in this market.

In fact, in today's disclosure, Diana now admits that valuations have risen. They cite a net asset value ("NAV") for Genco that is higher than they recently claimed and higher than their offer to Genco shareholders. It is also still lower than Genco's mean sell-side analyst NAV estimate of $26.54 and the current median analyst estimate of $26.80.