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The Company is taking actions necessary to ensure that the chapter 11 filing does not affect the Company's operations, its vendors or customers. The Company's operations will continue as usual during the chapter 11 process, which is expected to be concluded within 60 days. The Company has sought approval to pay all foreign and critical vendors in the ordinary course, as well as customary relief to continue its wage and benefit programs for its employees. Pursuant to the Plan, ownership of the Company's operating subsidiaries will be transferred to a newly-formed entity that will be owned principally by the lenders. Old equity holders will receive no distributions, and the Company will cease to be a reporting public company. 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 balance sheet 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 America, Africa, the Caribbean and the Middle East. Visit our website at www.tbsship.com. TBS International plc press release |
TBS International Receives Overwhelming Support From Banks