Document:

Exhibit 10.3

 

23 December 2010

 

The Royal Bank of Scotland plc

Shipping Business Centre

5-10 Great Tower Street

London EC3R 3HX

 

Dear Sirs

 

Facility Agreement dated 29 March 2007 as amended from time to time and made between (i) Argyle Maritime Corp., Caton Maritime Corp., Dorchester Maritime Corp., Longwoods Maritime Corp., McHenry Maritime Corp. and Sunswyck Maritime Corp. as joint and several Obligors, (ii) The Royal Bank of Scotland plc as Issuer relating to a guarantee facility of US$84,000,000 (the “Facility Agreement”)

 

Reference is hereby made to (i) the Facility Agreement and (ii) the Letter Agreement dated as of 12 November 2010 (the “Forbearance Letter”) whereby you as Issuer agreed subject to the conditions therein to forbear from exercising any of the rights or remedies arising from the Events of Default as specified therein (the “Specified Events of Default”).  Capitalized terms defined in the Facility Agreement or the Forbearance Letter and not otherwise defined herein are used herein as therein defined.

 

In order to allow time for TBS International plc and its affiliates to work with their various lenders towards a mutually agreeable solution on their outstanding indebtedness, we hereby request that you extend the period under which you agreed to forbear from exercising any of the rights or remedies arising from the Specified Events of Default available to you under the Facility Agreement and the other Finance 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) 12:01 a.m. E.S.T. on 1 February 2011 (the “Forbearance Extension Period”).  As used herein; a “Forbearance Termination Event” shall mean the occurrence of (i) any Event of Default under the Facility Agreement other than the Specified Events of Default or the Further Specified Events of Default (as defined below) or (ii) a breach of any of the conditions of this letter.

 

Such forbearance in respect of your rights and remedies under the Facility Agreement and other Finance Documents is conditioned upon and subject to TBS International plc and/or their applicable subsidiaries and affiliates having entered into amendments, waivers, forbearances or other modifications on or before 29 December 2010 in respect of each of (i) the loan facilities listed on Schedule 1 hereto and (ii) any swap and guarantee facilities to which TBS International plc and/or their applicable subsidiaries and affiliates are a party, deferring and/or forbearing until no earlier than 1 February 2011 any rights of the respective creditor parties under such facilities arising as a result of the Specified Events of Default and Further Specified Events of

 

 

Default.  In connection with your agreement hereunder, TBS International plc agrees that each of the conditions referred to in (B) 1 - 6, of the Forbearance Letter shall continue to apply during the Forbearance Extension Period.

 

Subject to the conditions precedent stated in the preceding paragraph and subject to the other terms and conditions set forth above, by counter-signing this letter you as Issuer agree to forbear from exercising any of the rights or remedies arising solely from the Specified Events of Default and the defaults under Clauses 13.1(f), Clause 13.1(f)(ii) and Clause 13.1(g)(ix) of the Facility Agreement (the “Further Specified Events of Default”) arising from the suspension of payments by TBS International plc and its affiliates of certain scheduled principal installments owing in respect of Financial Indebtedness of such persons during the Forbearance Extension Period, as more particularly described in Schedule 2 hereto on the terms set forth in the Forbearance Letter, as modified by the terms above.

 

 

	
 
  	
 
  	
Yours faithfully,
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
TBS INTERNATIONAL PLC
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
By:
  	
/s/ Ferdinand V. Lepere
  
	
 
  	
 
  	
 
  	
Name: Ferdinand V. Lepere
  
	
 
  	
 
  	
 
  	
Title: Senior Executive Vice President
  
	
 
  	
 
  	
 
  	
 
  
	
Acknowledged and Agreed,
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  
	
THE ROYAL BANK OF SCOTLAND PLC
  	
 
  	
 
  	
 
  
	
as Issuer
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  
	
By:
  	
/s/ Jon A. Charatte
  	
 
  	
 
  	
 
  
	
 
  	
Name: Jon A. Charatte
  	
 
  	
 
  	
 
  
	
 
  	
Title: Senior Vice President
  	
 
  	
 
  	
 
  

 

 

Schedule 1

 

TBS CREDIT FACILITIES

 

Bank of America Credit Facilities

 

DVB Group Merchant Bank (Asia) Ltd Credit Facility

 

Credit Suisse Credit Facility

 

AIG Commercial Equipment Finance, Inc. Credit Facility

 

Commerzbank AG Credit Facility

 

Berenberg Bank Credit Facility

 

The Royal Bank of Scotland Credit Facility

 

 

Schedule 2

 

	
Facility
  	
 
  	
Principal Amount
  	
 
  	
Date
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
Bank of America Facility as amended and restated on 26 March 2008
  	
 
  	
$
  	
9,500,000
  	
 
  	
31 December 2010
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
AIG Facility dated as of 7 December 2007 
  	
 
  	
$
  	
1,750,000
  	
 
  	
1 January 2011
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
DVB Facility dated as of 16 January 2008
  	
 
  	
$
  	
2,608,000
  	
 
  	
25 January 2011Exhibit 10.4

 

December 23, 2010

 

DVB GROUP MERCHANT BANK (ASIA) LTD.

77 Robinson Road 30-02

Singapore

Attention: Martijn van Tuyl

Facsimile: +65 6511 0700

 

RE:          Loan Agreement dated as of January 16, 2008 (as amended, the “Loan Agreement”) among, inter alia, the parties named therein as Borrowers (the “Borrowers”), the parties named therein as Guarantors, the banks and financial institutions named therein as Lenders, the banks and financial institutions named therein as Swap Banks, and DVB Group Merchant Bank (Asia) Ltd. as Facility Agent (in such capacity, the “Facility Agent”) and Security Trustee

 

Reference is hereby made to (i) the Loan Agreement, (ii) the Letter Agreement dated as of September 30, 2010 (the “Forbearance Letter”) whereby the Credit Parties agreed subject to the conditions therein to forbear from exercising any of the rights or remedies arising from the Specified Events of Default as provided therein and (iii) the Letter Agreement dated as of November 12, 2010 (the “First Forbearance Extension Letter”) whereby you agreed subject to the conditions therein to a Forbearance Extension Period ending as of January 13, 2011. Capitalized terms defined in the Loan Agreement, the Forbearance Letter or the First Forbearance Extension Letter and not otherwise defined herein are used herein as therein defined.

 

In order to allow time for TBS International, plc and its affiliates to work with their various lenders (including the lenders party to the Loan Agreement) towards a mutually agreeable solution on their outstanding indebtedness, we hereby request that you extend the Forbearance Extension Period set forth in the First Forbearance Extension Letter until the earlier of (i) the occurrence of a Forbearance Termination Event and (ii) February 1, 2011 (the “Amended Forbearance Extension Period”).

 

Such agreement to extend the Forbearance Extension Period is conditioned upon and subject to TBS International plc and/or their applicable subsidiaries and affiliates having entered into amendments, waivers, forbearances or other modifications on or before December 29, 2010 in respect of each of the other loan facilities listed on Schedule 1 hereto and in respect of each of the Bank of America Credit Facility, the RBS Credit Facility, the AIG Credit Facility, the Berenberg Credit Facility, the Commerzbank Credit Facility, the Credit Suisse Credit Facility, and the RBS Guarantee Facility, deferring and/or forbearing until no earlier than February 1,

 

 

2011 any rights of the respective creditor parties under such loan facilities arising as a result of the Payment Suspension.

 

Subject to the conditions precedent stated in the preceding paragraph and subject to the other terms and conditions set forth above, by counter-signing this letter the Facility Agent, for itself and on behalf of the other Credit Parties, agrees to forbear from exercising any of the rights or remedies arising solely from the Specified Events of Default (which shall include (in addition those identified in the Forbearance Letter and the First Forbearance Extension Letter) defaults arising from the suspension of payments by TBS International, public limited company and its affiliates of certain scheduled principal installments owing in respect of Indebtedness of such persons during the Amended Forbearance Extension Period, as more particularly described on Schedule 1 hereto) on the terms set forth in the Forbearance Letter and the First Forbearance Extension Letter, as modified by the terms above.

 

[Remainder of page intentionally left blank]

 

 

	
 
  	
 
  	
Very truly yours,
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
TBS INTERNATIONAL, PLC
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
By:
  	
/s/ Ferdinand V. Lepere
  
	
 
  	
 
  	
 
  	
Name: Ferdinand V. Lepere
  
	
 
  	
 
  	
 
  	
Title: Senior Executive Vice President
  
	
 
  	
 
  	
 
  	
 
  
	
Acknowledged and Agreed,
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  
	
DVB GROUP MERCHANT BANK (ASIA) LTD.,
  	
 
  	
 
  	
 
  
	
As Facility Agent, for and on behalf of itself and the other Credit Parties
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  
	
By:
  	
/s/ Daniel C. Rodgers
  	
 
  	
 
  	
 
  
	
 
  	
Name: Daniel C. Rodgers
  	
 
  	
 
  	
 
  
	
 
  	
Title: Attorney-in-fact
  	
 
  	
 
  	
 
  

 

 

Schedule 1

 

	
Facility
  	
 
  	
Principal Amount
  	
 
  	
Date
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
Bank of America Facility, as amended and restated on March 26, 2008
  	
 
  	
$
  	
 9,500,000
  	
 
  	
December 31, 2010
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
AIG Facility dated as of December 7, 2007
  	
 
  	
$
  	
 1,750,000
  	
 
  	
January 1, 2011
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
DVB Facility dated as of January 16, 2008
  	
 
  	
$
  	
 2,608,000
  	
 
  	
January 25, 2011

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