Greek Owners Restructure, Sell Two Ships
Greece-based NewLead Holdings Ltd. announces $75.0 Million debt reduction and $18.1 million conversion of debt to equity by sale of 2 tankships
NewLead Holdings Ltd. ("NewLead") announce that it has entered into an agreement with Piraeus Bank S.A. ("Piraeus Bank") to proceed with the sale of the two tanker vessels, Hiona and Hiotissa, for an aggregate amount of $57.0 million and to convert, subject to satisfaction of certain conditions precedent by the Company, $18.1 million debt into 22.1 million shares of NewLead's common stock.
As a result of this transaction, NewLead will be released from all obligations under the Piraeus Bank credit facility. These transactions are expected to occur in the third quarter of 2012 and are subject to certain conditions.
Michael Zolotas, President and Chief Executive Officer of NewLead, stated, "The sale of the two vessels is one more step forward in the completion of NewLead's restructuring. Today's agreement with Piraeus Bank to convert debt to equity demonstrates the confidence of our lenders in NewLead's prospects post restructuring."