December 28 - Shipping company, TBS International, is ending a year in which it has made various announcements about its existing credit facilities, by announcing that its various lender groups have agreed to extend the current forbearance period until Ja
The latest statement follows one made reported here on November 16 in which TBS International was given breathing space by its various lenders who will not be exercising their rights and remedies arising from TBS's failure to make principal payments when due.
In the latest statement, TBS says that 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 USD15.0 million.
