February 1 - Just weeks after HLPFI reported that various lenders had agreed to extend the forbearance period for heavy lift shipping line TBS International until January 31, 2011, and granted the line a six week repayment holiday, TBS has entered into am
The amendments restructure the company's debt obligations by revising the principal repayment schedules under the credit facilities, waiving any existing defaults, revising the financial covenants, including covenants related to the company's consolidated leverage ratio, consolidated interest coverage ratio and minimum cash balance and modifying other terms of the credit facilities.
As part of the amendments, senior executives have committed to inject USD10 million in new shares into the company. Joe Royce, company president and CEO; Gregg McNelis, senior executive vice president and COO; andLarry Blatte, the company's senior executive vice president, have committed to purchase a pro rata share of up to USD10 million of a new series of preference shares.
Ferdinand Lepere, senior executive vice president and CFO said: "I am very pleased that we were able to reach a consensus with 100 percent of our two dozen banks, spanning seven different loan facilities. I would like to thank our lenders and all of the professionals who worked tirelessly to achieve this restructuring. I believe TBS is now in a position to navigate the challenging global shipping market confronting us."
TBS provides worldwide shipping services with a fleet of multipurpose tweendeckers and handysize/handymax bulk carriers, including specialised heavy lift vessels and newbuildings.
