TBS International and Banks Agree to Amend Credit Facilities and Waive
All Defaults; Key Management Commits to Provide New Equity

DUBLIN, IRELAND, Jan 31, 2011 (MARKETWIRE via COMTEX)

TBS International plc (NASDAQ: TBSI) (the "Company") announced today that it has entered into amendments to its credit facilities with all of its lenders, including AIG Commercial Equipment, Commerzbank AG, Berenberg Bank and Credit Suisse and syndicates led by Bank of America, N.A., The Royal Bank of Scotland plc and DVB Group Merchant Bank (the "Credit Facilities"). The amendments restructure the Company's debt obligations by revising the principal repayment schedules under the Credit Facilities, waiving any existing defaults, revising the financial covenants, including covenants related to the Company's consolidated leverage ratio, consolidated interest coverage ratio and minimum cash balance, and modifying other terms of the Credit Facilities.

As part of the amendments, Messrs. Joe Royce, the Company's President and Chief Executive Officer and the Chairman of the Board, Gregg McNelis, the Company's Senior Executive Vice President and Chief Operating Officer, and Larry Blatte, the Company's Senior Executive Vice President, have committed to purchase a pro rata share of up to $10 million of a new series of preference shares. The Company intends to file a registration statement in the near future with the Securities and Exchange Commission under which it will conduct a rights offering that will enable all holders of the Company's ordinary shares at the close of business on the record date for the rights offering, who desire to purchase similar preference shares to make such purchases on the same terms and conditions. You must be a holder of ordinary shares on the record date, which the Company expects will be Monday, February 7, 2011, in order to participate in the rights offering.

Ferdinand Lepere, Senior Executive Vice President and Chief Financial Officer commented, "I am very pleased that we were able to reach a consensus with 100% of our two dozen banks, spanning seven different loan facilities. I would like to thank our lenders and all of the professionals who worked tirelessly to achieve this restructuring. I believe TBS is now in a position to navigate the challenging global shipping market confronting us."

The Company currently expects to be in compliance with all financial covenants and other terms of the amended Credit Facilities through maturity. As a result of the amendments to the Credit Facilities, the Company intends to classify the long-term portion of the Company's outstanding debt at December 31, 2010 as long-term debt in its consolidated balance sheet, thus remediating the uncertainty regarding TBS's ability to fulfill its financial commitments as they become due, which uncertainty was the condition that raised substantial doubt about TBS's ability to continue as a going concern.

This announcement shall not constitute an offer to sell nor a solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or jurisdiction in which the offer, solicitation or sale of securities would be unlawful. Any public offering of securities in the rights offering will be made by means of a prospectus that may be obtained from the Company and will contain detailed information about the Company and the offering.

For additional details, please refer to TBS's Form 8-K to be filed with the Securities and Exchange Commission.

TBS International Limited