TBS International Reaches Agreement With Banks on Continued Payment Deferral
27 Dezember 2010 - 10:30PM
Marketwired
TBS International plc (NASDAQ: TBSI) announced today that its
various lender groups have agreed to extend the current forbearance
period until January 31, 2011. During such period, the lender
groups will continue to forbear from exercising their rights and
remedies which arise from the Company's failure to make principal
payments when due. The Company will not make principal payments due
on its financing facilities during the extended forbearance period,
but it will continue to pay interest on those facilities at the
default interest rate. The Company and its lenders continue to
negotiate amendments to its various financing facilities that will
change the current payment schedules and cure any existing
defaults, and TBS believes that appropriate amendments to its
various financing facilities will be executed prior to the
expiration of the deferral.
Pursuant to the extended forbearance agreements, the minimum
cash liquidity covenant applicable during the forbearance period
requires the Company's cash balance, as of the last business day of
any week or its weekly average, to be at least $15.0 million.
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.
Included among the factors that, in the Company's view, could
cause actual results to differ materially from the forward looking
statements contained in this press release are the following:
- the Company's ability to reach agreements with its lenders to
amend its credit facilities and its ability to obtain waivers of,
or cure, defaults under its credit facilities;
- the Company's ability to maintain financial ratios and comply
with the financial covenants required by its credit facilities as
amended;
- the Company's ability to finance its operations and raise
additional capital on commercially reasonable terms or at all;
- changes in demand for and pricing of the Company's services,
both of which are difficult to predict due to continuing economic
uncertainty;
- the effect of a decline in vessel valuations;
- changes in rules and regulations applicable to the shipping
industry, including legislation adopted by international
organizations such as the International Maritime Organization and
the European Union or by individual countries;
- actions taken by regulatory authorities;
- changes in trading patterns, which may significantly affect
overall vessel tonnage requirements;
- changes in the typical seasonal variations in charter
rates;
- volatility in costs, including changes in production of or
demand for oil and petroleum products, crew wages, insurance,
provisions, repairs and maintenance, generally or in particular
regions;
- additional material declines or continued weakness in shipping
rates;
- changes in general domestic and international political
conditions;
- changes in the condition of the Company's vessels or applicable
maintenance or regulatory standards which may affect, among other
things, the Company's anticipated drydocking or maintenance and
repair costs;
- increases in the cost of the Company's drydocking program or
delays in its anticipated drydocking schedule;
- China Communications Construction Company Ltd./Nantong Yahua
Shipbuilding Group Co., Ltd.'s ability to complete and deliver the
remaining multipurpose tweendeckers on the anticipated schedule and
the ability of the parties to satisfy the conditions in the
shipbuilding agreements;
- the possible effects of pending and future legislation in the
United States that may limit or eliminate potential U.S. tax
benefits resulting from the Company's jurisdiction of
incorporation;
- Irish corporate governance and regulatory requirements which
could prove different or more challenging than currently expected;
and
- other factors that are described in the "Risk Factors" sections
of the Company's reports filed with the Securities and Exchange
Commission.
About TBS International plc: TBS provides
worldwide shipping solutions to a diverse client base of industrial
shippers. Through its Five Star Service consisting of ocean
transportation, operations, port services, projects, and strategic
planning, TBS delivers high-quality customer service. 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 business 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: 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
Tbs International (MM) (NASDAQ:TBSI)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Tbs International (MM) (NASDAQ:TBSI)
Historical Stock Chart
Von Jun 2023 bis Jun 2024