TBS International Reaches Agreement With Banks to Extend Forbearance
December 02 2011 - 4:58PM
Marketwired
TBS International plc (NASDAQ: TBSI) previously announced in
September 2011 that, with the agreement of the requisite lenders
under its various financing facilities, it would not make certain
principal payments due on its financing facilities for the period
through December 15, 2011. Today the Company is announcing that it
has reached agreements in principle with its lenders to restructure
the Company's debt. To permit documentation of the agreements in
principle, the lenders have agreed to an extension of the
forbearance period through February 15, 2012. The agreements in
principle, subject to final documentation and approvals, provide
for the continued operation of the Company's business under current
management, continued timely payment in full of all trade
creditors, satisfaction of the claims of certain lenders,
restructuring of the terms of debt held by the Company's key
lenders and no residual value for the existing common and preferred
stock.
During the extended forbearance period, the lenders will forbear
from exercising their rights and remedies which arise from the
Company's failure to make interest and principal payments when due
and any failure to comply with certain of its financial covenants,
and the Company and its lenders expect to finalize agreements with
respect to the Company's financial obligations and ongoing defaults
under its various financing facilities.
Joseph E. Royce, Chairman, Chief Executive Officer and
President, commented: "We are pleased to have reached these
agreements in principle because we believe it will ensure
continued, uninterrupted operation of the Company's fleet and the
Company's continued ability to meet its customers' needs on a
timely and efficient basis."
Forward-Looking Statements "Safe Harbor"
Statement under the Private Securities Litigation Reform Act of
1995
This press release contains forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on management's current expectations and observations. Such
statements are just predictions and involve risks and uncertainties
such that actual results may differ materially.
We refer you to our filings with the Securities and Exchange
Commission, in particular our quarterly report on Form 10-Q and our
annual report on Form 10-K. These documents contain and identify
important factors that could cause the actual results to differ
materially from those expressed in these forward-looking
statements.
About TBS International plc
TBS provides worldwide shipping solutions to a diverse client
base of industrial shippers through its Five Star Service: ocean
transportation, projects, operations, port services and strategic
planning. The TBS shipping network operates liner, parcel and dry
bulk services, supported by a fleet of multipurpose tweendeckers
and handysize/handymax bulk carriers, including specialized
heavy-lift vessels and newbuild tonnage. TBS has developed its
franchise around key trade routes between Latin America and China,
Japan and South Korea, as well as select ports in North America,
Africa, the Caribbean and the Middle East. Visit our website at
www.tbsship.com
For more information, please contact: Company Contact: Ferdinand
V. Lepere Senior Executive Vice President and Chief Financial
Officer TBS International plc Tel. 914-961-1000
InvestorRequest@tbsship.com Investor Relations / Media: Nicolas
Bornozis Capital Link, Inc. New York Tel. 212-661-7566 E-mail:
tbs@capitallink.com
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