May 3 - TBS International Plc has secured a waiver until May 14 of certain covenants with respect to its outstanding credit facilities with its syndicate of lenders as well as its loan agreements.
The two-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 USD25.0 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.