NewLead Holdings Ltd., an international shipping company
owning and operating tankers and dry bulk vessels, today announced that
on August 12, 2011, First Business Bank (“FBB”) and NewLead entered into a sale agreement for two vessels, the Newlead Prosperity and the
Newlead Spartounta.Pursuant to the terms of the sale agreement, the Company will
cooperate with FBB to proceed with the immediate sale of Newlead
Spartounta no later than September 13, 2011 and the sale of Newlead
Prosperity by auction or judicial sale. In return of the aforementioned
agreement, FBB has agreed to cancel the corporate guarantees by NewLead
of its debt and share pledges in respect to these two loans until the
completion of these sales, at which time the guarantees and share
pledges shall be unconditionally and irrevocably released and cancelled.As a result of prolonged challenging market conditions, NewLead has
entered into discussions with its lenders to develop an interim plan
that will improve liquidity and operating flexibility while developing a sustainable capital structure. The Company has appointed Moelis &
Company and Fried, Frank, Harris, Shriver & Jacobson LLP as its
advisors to assist with this process. The Company is seeking waivers
from its lenders to various restrictive covenants and an agreement that
they will forbear from exercising remedies under their respective debt
arrangements.Although the Company is optimistic that it will reach an agreement
with its lenders on the short-term waivers of defaults and on the terms
of the restructuring of the Company’s indebtedness, no assurances can be provided that these agreements will be concluded.Michael Zolotas, President, Chief Executive Officer and Interim Chief Financial Officer of NewLead, stated, “While we are facing very difficult market conditions, we are committed to
continue working with our lenders and other commercial partners to
develop a sustainable capital structure that will ensure the long term
prospects of NewLead.”
MARKETS
16 August 2011 - 18:52
Greece: NewLead Holdings Announces Agreement for Sale of Two Vessels
NewLead Holdings Ltd., an international shipping company owning and operating tankers and dry bulk vessels.
MARKETS
16 August 2011 - 18:52
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