In short it shows the banks willingness to look for solutions in todays current climate. It also shows that insolvent shipowners can somehow provide some assurances to clients that their ships will not be arrested and detained anytime soon....(a charterers biggest fear when dealing with a financially insecure shipowner)
I do wonder whether TBS are one of the lucky ones in some respect and whether there will be as much willingness to help as this shipping downturn plays out over the next few years.
Notably, the Company has, subject to court approval, obtained debtor-in-possession (DIP) financing of $42.8 million to fund operations during the Chapter 11 cases. This financing is provided entirely by the Company’s existing lenders, including Bank of America, DVB Bank, Toronto Dominion Bank and Credit Suisse. Under the Plan, the DIP financing claims and pre-petition secured debt are to be restructured so as to provide new liquidity, extended maturity dates and other terms sufficient to permit the new entity's successful emergence from Chapter 11 and future viability.
“We are very pleased that our banks are supportive of the steps we have taken to improve our balancesheet and, through it, the long-term health of our Company,” said Joseph E. Royce, Chairman, Chief
Executive Officer and President. “As a result of the restructuring, we should be positioned to be a
financially sound competitor in our global markets. We have taken steps to diminish the impact of this
process on our vendors, customers and employees, and we intend to move forward as expeditiously as
possible to complete the restructuring.
More importantly, I want to emphasize that this agreement ensures that our vessels will not be arrested and cargo will get to its destination as scheduled.”
Information about the restructuring is available at the Company’s website www.tbsship.com, or via the Company’s restructuring information line at (888) 418-5566 or (216) 370-3528 (from outside the US).
About TBS International plc
TBS provides worldwide shipping solutions to a diverse client base of industrial shippers through its Five Star Service: ocean transportation, projects, operations, port services and strategic planning. The TBS shipping network operates liner, parcel and dry bulk services, supported by a fleet of multipurpose tweendeckers and handysize/handymax bulk carriers. TBS has developed its franchise around key trade routes between Latin America and China, Japan and South Korea, as well as select ports in North Africa, Africa, the Caribbean and the Middle East. Visit our website at www.tbsship.com.
Soon i will find report on some good news where people are still making bundles of cash! Its not all bad people.........