Business Editors
NEW YORK--(BUSINESS WIRE)--July 6, 2000
TBS Shipping International Limited (the "Company") filed today a pre-negotiated chapter 11 reorganization case providing for the restructuring of its 10% First Preferred Ship Mortgage Notes Due 2005 (the "Notes"). The restructuring is the result of a previously announced agreement with holders of a substantial majority in principal amount of the Notes. Highlights of the reorganization include the issuance to existing noteholders of $50 million of amended and restated First Preferred Ship Mortgage Notes (with enhanced collateral and guarantor coverage) in addition to preferred stock, common stock and common stock warrants. The restructuring remains subject to definitive documentation and approval of the U.S. Bankruptcy Court, which the Company anticipates occurring in the third quarter of this year. The case, as well as a companion case in Bermuda, covers the Company, its parent and only its vessel-owning direct and indirect subsidiaries, none of which are involved in the operations of TBS Pacific Liner, Ltd., TBS Latin America Liner Ltd., and TBS North America Liner, Ltd. (the "Liner Companies"). The restructuring of the Notes should not negatively impact the business of the Liner Companies, which is continuing on a normal basis.
This press release contains certain forward-looking statements concerning the Company's (including its affiliates') future operations and financing plans, including such things as business strategy and measures to implement strategy. These statements are based on certain assumptions made by the Company in light of current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Consequently, all the forward-looking statements made herein are qualified, as there can be no assurance that actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company or its business or operations.
