TBS SHIPPING FILES UNDER CHAPTER XI, RESTRUCTURES DEBT
TBS SHIPPING FILES UNDER CHAPTER XI,
RESTRUCTURES DEBT
New York-based TBS Shipping
International Ltd. filed a pre-negotiated chapter XI reorganization case on
Friday.
The shipping company said
that the reorganization provides for the restructuring of its 10-percent first
preferred ship mortgage notes due 2005.
"The restructuring is
the result of a previously announced agreement with holders of a substantial
majority in principal amount of the notes," TBS Shipping International
said.
Under the restructuring,
existing noteholders will receive amended and restated first preferred ship
mortgage notes with enhanced collateral and guarantor coverage in addition to
stock and stock warrants.
The restructuring remains
subject to definitive documentation and approval of the U.S. Bankruptcy Court,
which the company expects in the third quarter.
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 these companies and
subsidiaries are involved in the operations of TBS Pacific Liner, Ltd., TBS
Latin America Liner Ltd., and TBS North America Liner, Ltd., TBS Shipping
International said.