TOP Ships Announces Delivery of Its Last Newbuilding Vessel, and Waiver From RBS
04 August 2009 - 10:30PM
PR Newswire (US)
ATHENS, Greece, Aug. 4 /PRNewswire-FirstCall/ -- TOP Ships Inc.
(NASDAQ: TOPS) announced today that it took delivery of the M/T
"HONGBO" from SPP Plant & Shipbuilding Co., Ltd of the Republic
of Korea on August 3, 2009. The M/T "HONGBO" is the last of six
50,000 dwt product / chemical tankers delivered within 2009. The
M/T "HONGBO" has entered into a bareboat time-charter employment
for a period of 10 years at a daily gross rate of $14,550. In
addition, TOP Ships Inc. announced today that it has issued
12,512,400 shares of its common stock to its wholly-owned
subsidiary, Hongbo Shipping Company Limited, which shares of stock
were pledged in favor of DVB Bank America N.V. (DVB) as security
for a bridge loan that DVB has provided for part of the financing
of the M/T "HONGBO." This pledge will be terminated upon repayment
of the bridge loan. TOP Ships Inc. also received today a
notification from the bareboat charterer of the M/T Papillon (ex
VOC Gallant), wherein such charterer declared its intention to pay
a reduced charterhire rate of $18,000 per day, rather than $24,000
per day on a bareboat basis as is set forth in the charterparty. As
a result, TOP Ships Inc. believes that such charterer is in breach
of the charterparty agreement, and TOP Ships Inc. has commenced
arbitration proceedings against such charterer to recover amounts
owed. Finally, TOP Ships Inc. has obtained a waiver from the Royal
Bank of Scotland (RBS) until March 31, 2010 in relation to the
breach of certain financial covenants under the RBS term loan.
About TOP Ships Inc. TOP Ships Inc., formerly known as TOP Tankers
Inc., is an international provider of worldwide seaborne crude oil
and petroleum products and drybulk transportation services. The
Company operates a combined tanker and drybulk fleet as follows: --
A fleet of eight double-hull Handymax tankers, with a total
carrying capacity of approximately 0.4 million dwt, of which 76%
are sister ships. Two of the Company's Handymaxes are on time
charter contracts with an average term of one year with both of the
time charters including profit sharing agreements above their base
rates. Six of the Company's Handymax tankers are fixed on a
bareboat charter basis with an average term of 8.7 years. -- A
fleet of five drybulk vessels with a total carrying capacity of
approximately 0.3 million dwt, of which 47% are sister ships. All
of the Company's drybulk vessels have fixed rate employment
contracts for an average period of 26 months. Forward Looking
Statements Certain statements and information included in this
release constitute "forward-looking statements" within the meaning
of the Federal Private Securities Litigation Reform Act of 1995.
The Private Securities Litigation Reform Act of 1995 provides safe
harbor protections for forward-looking statements in order to
encourage companies to provide prospective information about their
business. Forward-looking statements reflect our current views with
respect to future events and financial performance and may include
statements concerning plans, objectives, goals, strategies, future
events or performance, and underlying assumptions and other
statements, which are other than statements of historical facts.
The Company desires to take advantage of the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995 and is
including this cautionary statement in connection with this safe
harbor legislation. The words "believe," "anticipate," "intends,"
"estimate," "forecast," "project," "plan," "potential," "may,"
"should," "expect," "pending" and similar expressions identify
forward-looking statements. Important factors that, in our view,
could affect the matters discussed in these forward-looking
statements include, general market conditions, including
fluctuations in charter rates and vessel values, changes in the
demand for our vessels, offers that may be received from third
parties, potential liability from pending or future litigation,
general domestic and international political conditions, and other
factors. Please see our filings with the Securities and Exchange
Commission for a more complete discussion of these and other risks
and uncertainties. Contact: Michael Mason (investors) Allen &
Caron Inc 212 691 8087 DATASOURCE: TOP Ships Inc. CONTACT:
Investors, Michael Mason of Allen & Caron Inc, +1-212-691-8087,
, for TOP Ships Inc. Web Site: http://www.topships.org/
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