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"We are very pleased with this extraordinary vote of confidence in our long term sustainability provided by our lenders," said Joseph E. Royce, Chairman, Chief Executive Officer and President. "We look forward to renewing our focus on growing and managing our business. As a result of this restructuring, our company will be positioned to successfully compete in our global markets." At emergence, the reorganized Company will have reduced its debt by over $100 million since September 30, 2011. Under the Plan, the Debtor-in-Possession financing claims and pre-petition secured debt will be restructured so as to provide new liquidity, extended maturity dates, and other terms that are expected to ensure the Company's future viability. Most importantly, the Company has always and continues to be committed to its customers and vendors. The Company will have considerable flexibility to acquire strategic long and short term charters, which will enable it to meet a wide variety of customer needs going forward. In addition, all trade vendors will be paid in full in cash for all allowed claims. In fact, the vast majority of the Company's vendors have already been paid for all amounts due and continue to maintain positive business relations with TBS. Upon emergence from chapter 11, the Company will have eliminated any possibility of valid vessel arrest due to the bankruptcy process. Gregg McNelis, Senior Executive Vice President and Chief Operating Officer, remarked on the loyalty of key clients throughout the restructuring process. "TBS has always put our customers first, and we have deeply appreciated their continued support as we worked with our lenders to restructure our bank facilities in the current difficult operating environment. TBS is now positioned to compete even more strongly and to meet all of our customers' shipping logistics needs." Pursuant to the Plan, ownership of the Company's operating subsidiaries will be transferred to a newly-formed entity that will be owned principally by the Company's lenders. The Company's current equity holders will receive no distributions under the Plan, and the Company will cease to be a reporting public company. Information about the restructuring is available at the Company's website, www.tbsship.com or via the Company's restructuring information line at (888) 418-5566 or (216) 370-3528 (from outside the U.S.). About TBS TBS provides worldwide shipping solutions to a diverse client base of industrial shippers through its Five Star Service: ocean transportation, projects, operations, port services and strategic planning. The TBS shipping network operates liner, parcel and dry bulk services, supported by a fleet of multipurpose tweendeckers and handysize/handymax bulk carriers. TBS has developed its franchise around key trade routes between Latin America and China, Japan and South Korea, as well as select ports in North America, Africa, the Caribbean and the Middle East. Visit our website at www.tbsship.com. TBS International plc press release |
Court Confirms TBS International Plan of Reorganization