Court Confirms TBS International Plan of Reorganization

Press Release
Thursday, March 29, 2012

TBS International plc announced that the U.S. Bankruptcy Court for the Southern District of New York has confirmed the Company's Plan of Reorganization, paving the way for the reorganized Company's expedited emergence from chapter 11 proceedings, less than 60 days after its February 6 filing.

The Plan reflects overwhelming support from its voting lenders to restructure the Company's secured debt and to pay in full in cash all allowed claims of unsecured creditors, including all vendors. As a result, the reorganized Company will emerge from its pre-packaged restructuring with a healthy capital structure, including approximately $40.0 million in new money financing, provided by its existing lenders, which will provide ample liquidity for the Company and enable the Company to maintain its position as a market leader in the shipping industry.

"We are very pleased with this extraordinary vote of confidence in our long-term sustainability provided by our lenders," said Joseph E. Royce, Chairman, Chief Executive Officer and President. "We look forward to renewing our focus on growing and managing our business. As a result of this restructuring, our company will be positioned to successfully compete in our global markets."

At emergence, the reorganized Company will have reduced its debt by over $100 million since September 30, 2011. Under the Plan, the Debtor-in-Possession financing claims and pre-petition secured debt will be restructured so as to provide new liquidity, extended maturity dates, and other terms that are expected to ensure the Company's future viability.

The Company will have considerable flexibility to acquire strategic long- and short-term charters, which will enable it to meet a wide variety of customer needs going forward. In addition, all trade vendors will be paid in full in cash for all allowed claims. In fact, the vast majority of the company's vendors have already been paid for all amounts due and continue to maintain positive business relations with TBS. Upon emergence from chapter 11, the Company will have eliminated any possibility of valid vessel arrest due to the bankruptcy process.

Pursuant to the Plan, ownership of the Company's operating subsidiaries will be transferred to a newly-formed entity, which will be owned principally by the Company's lenders. The Company's current equity holders will receive no distributions under the Plan, and the Company will cease to be a reporting public company.
 

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Ocean Rig, Petrobras Agree to $1.1b Drill Ships Lease

Cyprus-based Ocean Rig UDW Inc said on Monday that it signed a $1.1 billion three-year contract with Brazil's state-run oil company, Petroleo Brasileiro SA, to

Thrustmaster Announces Factory Expansion

Thrustmaster of Texas, a manufacturer of commercial marine propulsion products, signed a deal last week to expand its Houston-based production facility by 100,000 sqft (93,000 sq m).

Ocean Training Launches Blended Learning Course

Major revisions to the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (The STCW Convention) came into force in 2012.

Finance

Maduro Says Venezuela's 2015 Budget to Put Oil at $60

Venezuela's 2015 budget will be based on a target oil price of $60 dollars per barrel, President Nicolas Maduro said on Friday night, but he repeated expectations that prices will recover.

No Merger of Yara & CF Industrie

Yara International ASA and CF Industries have terminated their discussions regarding a potential merger of equals transaction. "This has been a constructive process,

Hurricane Ana Heads towards Hawaii

Tropical Storm Ana strengthened into a hurricane on Friday and was moving in the direction of Hawaii but was not expected to make a direct hit on the islands, the U.

News

Cargill: 50,000T of Sugar Affected by Brazil Fire

Approximately 50,000 tonnes of sugar were stored in a warehouse affected by fire in the Teag terminal in Brazil on Monday, Cargill Inc said in a statement. The terminal,

SOSI Delivers Mooring Winches; Completes Test Pad

Sound Ocean Systems, Inc. (SOSI) announced the delivery of two unique mooring winches, both tested on its newly constructed test pad at its primary manufacturing facility in Sultan, Wash.

Performance by Design: Hydrodynamics for High-Speed Vessels

The new book “Performance by Design: Hydrodynamics for High-Speed Vessels” will be introduced on October 30 at the Fort Lauderdale International Boat Show, Donald L.

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Offshore Oil Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1703 sec (6 req/sec)