TBS SHIPPING FILES UNDER CHAPTER XI, RESTRUCTURES DEBT
New York-based TBS Shipping International Ltd. filed a pre-negotiated chapter XI reorganization case on Friday.The shipping company said that the reorganization provides for the restructuring of its 10-percent first preferred ship mortgage notes due 2005.
"The restructuring is the result of a previously announced agreement with holders of a substantial majority in principal amount of the notes," TBS Shipping International said.
Under the restructuring, existing noteholders will receive amended and restated first preferred ship mortgage notes with enhanced collateral and guarantor coverage in addition to stock and stock warrants.
The restructuring remains subject to definitive documentation and approval of the U.S. Bankruptcy Court, which the company expects in the third quarter.
The case, as well as a companion case in Bermuda, covers the company, its parent and only its vessel-owning direct and indirect subsidiaries. None of these companies and subsidiaries are involved in the operations of TBS Pacific Liner, Ltd., TBS Latin America Liner Ltd., and TBS North America Liner, Ltd., TBS Shipping International said.
