TBS to Deleverage Balance Sheet; Refresh Fleet

TBS International plc (NASDAQ: TBSI) has reached agreements with its bank lenders on terms to reduce its leverage and refresh its fleet. As part of these agreements, TBS and the syndicates led by Bank of America and DVB Group Merchant Bank have agreed on terms to restructure outstanding indebtedness that contemplate exchanging existing senior debt for new senior debt and equity and the refreshing of the TBS fleet by long-term charters of modern tweendeckers and bulk carriers. These terms provide for payment in full of the amounts owed to the Bank of America and DVB syndicates over a significantly extended maturity period, the continued business operations of TBS under current management and the same quality of Five Star service that TBS's customers have always experienced. TBS's other lenders, Credit Suisse and American International Group, have agreed on similar terms. TBS also is reducing its leverage by delivering, at the completion of their present voyages, the six vessels that are collateral for loans from a syndicate led by The Royal Bank of Scotland in exchange for a full release of all amounts owed to that syndicate. The terms of these agreements do not provide for any remaining value in the outstanding ordinary or preferred shares of TBS.