TBS SHIPPING RESTRUCTURES DEBTS

TBS SHIPPING RESTRUCTURES DEBTS    New York-based TBS Shipping International Ltd. said that it has reached an agreement in principle with certain holders of its 10-percent first preferred ship mortgage notes due 2005 to restructure the notes.
   Under the agreement, TBS Shipping International Ltd. will merge with its parent company and issue $50 million of new secured debt in addition to preferred stock, common stock and common stock warrants.
   TBS Shipping International is currently involved in U.S. chapter 11 proceedings.
   The restructuring of the mortgage notes remains subject to definitive documentation and will be implemented through the chapter 11 reorganization of company, its parent and only its vessel-owning direct and indirect subsidiaries. TBS Shipping Ltd. said that these companies and subsidiaries are not involved in the operations of TBS Pacific Liner, Ltd., TBS Latin America Liner Ltd., and TBS North America Liner, Ltd.
   “The restructuring of the notes should not negatively impact the business of the liner companies, which is continuing on a normal basis,” TBS Shipping Services said.