Dry bulk carrier DryShips Inc. (NASDAQ: DRYS) filed a Form 6-K with the U.S. Securities and Exchange Commission (SEC) reporting that the company has breached certain financial covenants and, as a result, lenders have declared the company in default. The defaults and the poor state of the market for shipping “raise substantial doubt about the company’s ability to continue as a going concern for a reasonable period of time.”

According to the filing, the lenders may demand immediate payment of $213,667, an amount that would exceed DryShips’ working capital total of $146,340 at the end of March.

DryShips explained:

Given the prolonged market downturn in the drybulk segment and the continued depressed outlook on freight rates and vessels’ market values, cash expected to be generated from operations or proceeds from the sale of vessels, assuming that current market charter hire rates would prevail in the twelve-month period ending March 31, 2017, will not be sufficient to cover the Company’s working capital deficit. These conditions and events raise substantial doubt about the Company’s ability to continue as a going concern, for a reasonable period of time.

In 2007, shares of the company traded around $125, before the financial crisis clobbered the dry bulk shipping business. Day rates plummeted and really never have recovered. The company has sold all its tankers and 19 bulkers or bulker-owning carriers and all its remaining vessels are carried on its books as “held for sale.”

DryShips noted that it expects to finance its working capital deficit either with cash on hand, cash from operations, proceeds from the sale of its remaining vessels and bank debt. In order to preserve liquidity, the company has “suspended principal repayment and interest payments to preserve cash liquidity and is currently engaged in discussions with its lenders for the restructuring of its debt facilities.”

Investors, however, are abandoning ship. Shares traded down nearly 38% in Tuesday’s premarket at $1.47, after closing Monday at $2.36. The stock’s 52-week range is $1.80 to $19.00.

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