TBS Faces Uncertain Future

TBS International has reported losses of US$21.2 million for third quarter 2011, more than twice its net loss of US$10.4 million in the same period last year. Total revenues for the third quarter of 2011 were US$95.7 million and include voyage revenues of US$72.3 million, time charter revenues of US$23.0 million and logistics and other revenues of US$0.4 million. Total revenues decreased by US$4.1 million, or 4.1 percent, compared with $99.8 million for the same period in 2010, according to the Dublin-based company's third quarter financial results.

During October 2011, TBS sold three vessels for a total of US$16 million. The proceeds will be used to reduce the company's debt obligations. Further, TBS continued its drydocking program and drydocked three vessels in the third quarter, including two vessels which entered into drydock during the second quarter of 2011, for a total of 105 days.

"Even if the company is successful in restructuring scheduled principal amounts or the Forbearance Agreements are extended, the company will still need to raise additional funds to facilitate principal repayments subsequent to December 15, 2011, and to remain in compliance with the minimum cash liquidity covenant or other covenants under its credit facilities.,” TBS chief financial officer Ferdinand Lepere, said in a statement. “As a result, there continues to be substantial doubt about the company's ability to continue as a going concern.”

Photo shows the Maya Princess, a 34,000-dwt tweendecker delivered to TBS in June 2011, the last in a series of six newbuildings.