April 18 - TBS International and its various lender groups have agreed to modify certain financial covenants through December 31, 2011.

In accordance with the modifications, the minimum consolidated interest charges coverage ratio has been reduced for the fiscal quarters ending June 30, 2011 through December 31, 2011 from 3.35 to 1.00 to 2.50 to 1.00.

In addition, the modifications increased the maximum consolidated leverage ratio for the same periods from 4.00 to 1.00 to 5.10 to 1.00, and reduced the minimum cash requirement from USD15 million to USD10 million for the period from July 1, 2011 to December 31, 2011.


The company expects that these latest amendments will allow it to comply with its various credit facilities through December 31, 2011. Unless the Baltic Dry Index, and the freight and charter rates that TBS obtains, strengthen significantly in the near future, however, it is likely that after December 31, 2011 TBS would fail to meet the tests under certain of its financial covenants. The Company's lenders have agreed to enter into further negotiations at that time, if necessary, to seek further modifications of those financial covenants