October 1 - In the latest of a series of announcements this year about its financing facilities, TBS International plc has announced that, with the agreement of the requisite lenders under its various financing facilities, it is not making the principal p
Furthermore, that its lender groups will forbear during this 45-day period from exercising their rights and remedies which arise from the Company's failure to make principal payments when due.
During this 45-day period, the Company and its various lender groups will attempt to negotiate amendments to the various financing facilities that will change the current payment schedules and cure any existing defaults, and TBSbelieves that appropriate amendments to its various financing facilities will be executed prior to the expiration of the deferral. The Company will continue to pay interest on its financing facilities at the default interest rate during this period.
Joseph E. Royce, chairman, chief executive officer and president, commented: "The continued weakness in theBaltic Dry Index, or BDI, the industry indicator for spot dry bulk freight rates, during the third quarter has caused the company and our lenders to consider the desirability of stretching out the scheduled amortization of principal under our various financing facilities. This 45-day forbearance agreement provides us all with the time we need to revise the existing amortization schedules in our various agreements."
Ferdinand V. Lepere, executive vice president and chief financial officer, commented: "TBS remains in a solid financial condition, but has concluded that it is prudent to conserve cash by extending the amortization periods for our various financing facilities. During this 45-day period, we will continue to operate our business as usual, to pay all of our vendors and to pay interest on our debt. We are confident that with the amendments we are discussing with our lenders we will continue to pay all of our lenders, vendors and other creditors in full."