For a very long time now, FreeSeas Inc (NYSE:FREE) has not managed to enjoy its stay in the business and also at the trading platform of NASDAQ exchange. The FreeSeas Inc is one of the penny stocks which are holding up to $0.43 in per share value as per the closing of the previous trading session. The one year low of the company is $0.17 and the highest is $5.80.
The Marshall Islands Corporation made an announcement on October 10 that they would be eliminating all their debts of $30 million. Moreover, the announcement also included an approval of the terms and conditions of an exchange agreement a day earlier by the Supreme Court of the State of New York. The exchange agreement included the company and the Crede Capital Group with the help of a wholly – owned subsidiary called Crede CG III Ltd.
The CEO of the company, Ion G. Varouxakis also made the above mentioned encouraging announcement. After the deal was done, FreeSeas Inc also eliminated a large number of total bank debt with the help of whooping $30 million. This means that FreeSeas would easily transform the balance sheet and set their path for a safer growth of the future.
This deal also opened doors for the company to pursue immediate gains which are estimated to more than $12 million.
The settlement of the deal gave way to FreeSeas $30 million in the bank debt. It began with an amendment to a previous settlement agreement with the Deutsche Bank that allowed Crede to become a part of the agreement being prepared by FreeSeas Inc. As a result of this, Crede agreed to purchase the $10.5 million of the outstanding debt which is owned by FreeSeas to Deutsche Bank. FreeSeas Inc is a dry bulk transportation company.
