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8-K - PRESS RELEASE 4/30/10 - TBS International plc | press_release043010.htm |
TBS
International Continues Discussions with its Lenders
DUBLIN,
IRELAND – April 30, 2010 –
TBS
International plc (NASDAQ: TBSI) announced today that it has secured a waiver
through May 14, 2010 of certain covenants with respect to its outstanding credit
facilities with its syndicate of lenders led by Bank of America, its syndicate
of lenders led by The Royal Bank of Scotland and its syndicate of lenders led by
DVB Group Merchant Bank, as well as its loan agreements with AIG Commercial
Equipment, Commerzbank AG, Berenberg Bank and Credit Suisse (the "Financing
Facilities"). The 2-week waiver is intended to give the parties
adequate time to continue negotiations of new credit facilities, or amendments
to existing credit facilities, which TBS International believes will be executed
prior to May 14.
In
December 2009, the company entered into agreements with the lenders under the
Financing Facilities to waive certain financial covenants through March 31,
2010. On March 31, 2010, the Financing Facilities were further
modified to provide a waiver through April 30, 2010 of the collateral coverage
covenants and other financial covenants, provided that the company satisfies new
covenants, including minimum end of month cash balances of not less than $25.0
million and a minimum ratio of earnings before interest, depreciation and
amortization to interest expense. On April 30, 2010, the Financing
Facilities were further modified to provide a waiver through May 14,
2010.
Forward-Looking
Statements "Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995
This
press release contains forward-looking statements made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on management's current expectations and
observations.
Included
among the factors that, in the company's view, could cause actual results to
differ materially from the forward looking statements contained in this press
release are the following:
·
|
changes
in demand for the company's services, which are increasingly difficult to
predict due to current economic conditions and
uncertainty;
|
·
|
the
effect of a decline in vessel
valuations;
|
·
|
the
company's ability to maintain financial ratios and satisfy financial
covenants required by its credit
facilities;
|
·
|
the
company's ability to finance its operations and raise additional capital
on commercially reasonable terms or at
all;
|
·
|
changes
in rules and regulations applicable to the shipping industry, including
legislation adopted by international organizations such as the
International Maritime Organization and the European Union or by
individual countries;
|
·
|
actions
taken by regulatory authorities;
|
·
|
changes
in trading patterns, which may significantly affect overall vessel tonnage
requirements;
|
·
|
changes
in the typical seasonal variations in charter
rates;
|
·
|
volatility
in costs, including changes in production of or demand for oil and
petroleum products, crew wages, insurance, provisions, repairs and
maintenance, generally or in particular
regions;
|
·
|
the
risk that financial counterparties will
default;
|
·
|
a
material decline or weakness in shipping rates, which may occur if the
economic recovery is not
sustainable;
|
·
|
changes
in general domestic and international political
conditions;
|
·
|
changes
in the condition of the company's vessels or applicable maintenance or
regulatory standards which may affect, among other things, the company's
anticipated drydocking or maintenance and repair
costs;
|
·
|
increases
in the cost of the company's drydocking program or delays in the company's
anticipated drydocking schedule;
|
·
|
China
Communications Construction Company Ltd./Nantong Yahua Shipbuilding Group
Co., Ltd.’s ability to complete and deliver the remaining vessels on the
anticipated schedule and the ability of the parties to satisfy the
conditions in the shipbuilding
agreements;
|
·
|
the
possible effects of pending and future legislation in the United States
that may limit or eliminate potential U.S. tax benefits resulting from the
company's jurisdiction of
incorporation;
|
·
|
Irish
corporate governance and regulatory requirements, which could prove
different or more challenging than currently expected;
and
|
·
|
other
factors that we described in the "Risk Factors" sections of the company's
periodic reports filed with the Securities and Exchange
Commission.
|
About
TBS International plc:
TBS is a
fully-integrated transportation service company that provides worldwide shipping
solutions to a diverse client base of industrial shippers. Through
the TBS Five Star Service consisting of ocean transportation, operations,
logistics, port services, and strategic planning, TBS offers total project
coordination and door-to-door supply chain management. The TBS shipping network
operates liner, parcel and dry bulk services, supported by a fleet of
multipurpose tweendeckers and handysize and handymax bulk carriers, including
specialized heavy-lift vessels and newbuild tonnage. TBS has developed its
business around key trade routes between Latin America and China, Japan and
South Korea, as well as select ports in North America, Africa, the Caribbean and
the Middle East.
Visit our
website at www.tbsship.com
For more
information, please contact:
Company
Contact:
Ferdinand
V. Lepere
Executive
Vice President and Chief Financial Officer
TBS
International plc
Tel.
914-961-1000
InvestorRequest@tbsship.com
Investor
Relations / Media:
Nicolas
Bornozis
Capital
Link, Inc. New York
Tel.
212-661-7566
E-mail:
tbs@capitallink.com