TBS International said it had reached agreements in principle with lenders to restructure its debt.
TBS has a fleet of 28 multipurpose tweendeckers and 21 handymax and handysize bulk carriers totaling 1.5 million deadweight tons.
It had announced in September that with the agreement of the requisite lenders under its various financing facilities, it would not make certain principal payments due on its financing facilities for the period through Dec. 15.
On Friday it said to permit documentation of the agreements in principle it has reached, lenders have agreed to an extension of the forbearance period through Feb. 15, 2012.
TBS said the agreements in principle, subject to final documentation and approvals, provide for the continued operation of the TBS under current management, continued timely payment in full of all trade creditors, satisfaction of the claims of certain lenders, restructuring of the terms of debt held by the company’s key lenders and no residual value for the existing common and preferred stock.
Joseph E. Royce, chairman, CEO and president said the company believed the agreements “will ensure continued, uninterrupted operation of the company’s fleet and the company’s continued ability to meet its customers’ needs on a timely and efficient basis.”
In the first nine months of 2011, the company had a loss of $52 million, and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $32 million.
TBS International reaches deal with lenders
