November 16 - TBS International has been given breathing space by its various lenders who will not be exercising their rights and remedies arising from TBS's failure to make principal payments when due. There will be no action against TBS from November 15

The company will not make principal payments due on its financing facilities during the extended forbearance period, but will continue to pay interest on those facilities at the default interest rate. The company and its lenders continue to negotiate amendments to its various financing facilities that will change the current payment schedules and cure any existing defaults, and TBS believes that appropriate amendments to its various financing facilities will be executed prior to the expiration of the deferral.

The new forbearance agreements replace the company's minimum cash liquidity covenant during the forbearance period, providing that the company's cash balance as of the last business day of any week or averaged weekly cash balance must not fall below USD15.0 million. Each lender who consented to the forbearance agreements will receive a consent fee equal to 0.05 percent of its total outstanding loan amount.

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 co-ordination 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, including specialised heavylift ships and newbuild tonnage.