Ex-10.5

 

September 30, 2010

 

AIG Commercial Equipment Finance, Inc.

5700 Granite Parkway, Suite 850

Plano, Texas 75024

 

RE:                           Specified Events of Default under that certain
Loan Agreement dated February 29, 2008 by and among AIG Commercial Equipment
Finance, Inc., Amoros Maritime Corp., Lancaster Maritime Corp., Chatham Maritime
Corp. and the guarantors party thereto (as amended, the “Loan Agreement”).

 

Reference is hereby made to the Loan Agreement.  Capitalized terms defined in
the Loan Agreement and not otherwise defined herein are used herein as therein
defined.

 

We hereby notify you that the Borrowers will be suspending the payment of
certain upcoming scheduled principal installments owing in respect of certain
Indebtedness of such persons, as more particularly described on Schedule 1
hereto, for a period of 46 days beginning on September 30, 2010 and ending on
November 14, 2010 (the “Payment Suspension”).  The Payment Suspension will
result in one or more Events of Default occurring under the Loan Agreement (any
such Event of Default resulting solely from the Payment Suspension, the
“Specified Events of Default”).

 

In order to allow time for TBS International public limited company and its
affiliates to work with their various lenders, including you, towards a mutually
agreeable solution on their outstanding indebtedness, we hereby request that you
forbear from exercising any of the rights or remedies arising solely from the
Specified Events of Default available to you under the Loan Agreement, other
transaction documents or under applicable law (all of which rights and remedies
are hereby expressly reserved by you) until the earlier of (i) the occurrence of
a Forbearance Termination Event and (ii) November 15, 2010.  As used herein, a
“Forbearance Termination Event” shall mean the occurrence of any breach, default
or Event of Default under the Loan Agreement (other than the Specified Events of
Default).

 

We also notify you that the principal payments due under the Commerzebank Loan
Agreement on September 3, 2010 have been paid after such date.  We hereby
request you waive any Events of Default occurring from the timing of such
payment (the “Commerzbank Payment”).

 

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By counter-signing this letter, you agree to forbear from exercising any of the
rights or remedies arising solely from the Specified Events of Default and waive
any Events of Default resulting solely from the Commerzbank Payment, in each
case, on the terms set forth above.

 

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Very truly yours,

 

 

 

 

 

TBS INTERNATIONAL PUBLIC LIMITED COMPANY

 

 

 

By:

/s/ Ferdinand V. Lepere

 

 

Name: Ferdinand V. Lepere

 

 

Title: Senior Executive Vice President and Chief Financial Officer

 

 

Acknowledged and Agreed provided that all of the lenders identified on the
attached Schedule 1 have also countersigned on or before September 30, 2009 a
forbearance letter agreement containing the same terms as this letter agreement:

 

 

AIG COMMERCIAL EQUIPMENT FINANCE, INC.

 

 

 

 

 

By:

/s/ Rich Johnston

 

 

Name: Rich Johnston

 

 

Title: Vice President

 

 

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Schedule 1

 

Facility

 

Principal Amount

 

Date

 

 

 

 

 

 

 

Bank of America Facility, as amended and restated on March 26, 2008

 

$

9,500,000

 

September 30, 2010

 

 

 

 

 

 

 

AIG Loan Agreement dated as of February 29, 2008 (as amended)

 

$

1,800,000

 

October 1, 2010

 

 

 

 

 

 

 

DVB Facility dated as of January 16, 2008

 

$

2,608,000

 

October 23, 2010

 

 

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