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Hamilton, Bermuda - Nov. 18, 2015 - PRNewswire
NewLead Holdings Ltd. (OTC: NEWL) ("NewLead" or the "Company") announced today that the previously announced, on June 18, 2014, completion of a referenced $44.8 million balance sheet enhancement program (the "program") with Magna Group Partners Limited ("MGP") and Hanover Holdings I, LLC ("Hanover"), was the satisfaction of the Company's obligations under the $44.8 million court ordered settlement agreement (the "Order") with MGP and Hanover, all as more fully described in NewLead's current reports on Form 6-K, as initially filed on December 2, 2013 and through June 30, 2014 with respect to such Order dated December 2, 2013. The Order was in accordance with a stipulation of settlement (the "Settlement Agreement") among NewLead, MGP and Hanover, in the matter entitled Hanover Holdings I, LLC v. NewLead Holdings Ltd., Case No. 160776/2013 (the "Action"). Hanover commenced the Action against the Company on November 19, 2013 to recover an aggregate of $44,822,523.85 of past-due indebtedness of the Company which Hanover had purchased (and validly assigned to MGP) from certain creditors of the Company.
The Order provided for the full and final settlement of the Action, which would be deemed satisfied upon the issuance of common shares as settlement shares until MGP received aggregate cash proceeds from the resale of such settlement shares equal to the sum of approximately $61.6 million, representing 137.5% of the total amount of the Action, plus certain additional "true-up" shares pursuant to a formula set forth in the Settlement Agreement. To satisfy its obligations under the Settlement Agreement, NewLead issued an aggregate of 768,753 common shares (adjusted to give effect to the 1-for-10, 1-for-50 and 1-for-50 reverse stock splits, effective March 6, 2014, May 15, 2014 and July 15, 2014, respectively) or approximately 19.2 billion shares not giving effect to the reverse splits.
About NewLead Holdings Ltd.
NewLead Holdings Ltd. is an international vertically integrated shipping, logistics and commodity company providing ideal solutions for seaborne transportation of dry bulk commodities and petroleum products through owned and managed vessels. NewLead controls a fleet of ten vessels, including five dry bulk and five tanker vessels and manages one third party tanker vessel. NewLead is a Securities and Exchange Commission ("SEC") reporting Foreign Private Issuer in compliance with applicable SEC rules and regulations and current in its SEC reporting, utilizing U.S. Generally Accepted Accounting Principles' financial reporting standards. NewLead's common shares are traded under the symbol "NEWL" on the Over-the-Counter market. To learn more about NewLead Holdings Ltd., please visit NewLead's renewed website at www.newleadholdings.com.
NewLead Holdings Ltd. press release