TBS International Reaches Agreement With Banks on Payment Deferral

DUBLIN, IRELAND, Oct 01, 2010 (MARKETWIRE via COMTEX)

TBS International plc (NASDAQ: TBSI) announced today that, with the agreement of the requisite lenders under its various financing facilities, it is not making the principal payments due on its financing facilities for the period from September 30, 2010 through November 14, 2010 and that its lender groups will forbear during this 45-day period from exercising their rights and remedies which arise from the Company's failure to make principal payments when due. During this 45-day period, the Company and its various lender groups will attempt to negotiate amendments to the 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 Company will continue to pay interest on its financing facilities at the default interest rate during this period.

Joseph E. Royce, Chairman, Chief Executive Officer and President, commented: "The continued weakness in the Baltic Dry Index, or BDI, the industry indicator for spot dry bulk freight rates, during the third quarter has caused the Company and our lenders to consider the desirability of stretching out the scheduled amortization of principal under our various financing facilities. This 45-day forbearance agreement provides us all with the time we need to revise the existing amortization schedules in our various agreements."

Ferdinand V. Lepere, Executive Vice President and Chief Financial Officer, commented: "TBS remains in a solid financial condition, but has concluded that it is prudent to conserve cash by extending the amortization periods for our various financing facilities. During this 45-day period, we will continue to operate our business as usual, to pay all of our vendors and to pay interest on our debt. We are confident that with the amendments we are discussing with our lenders we will continue to pay all of our lenders, vendors and other creditors in full."

TBS International Limited